Posted To: MBS Commentary
MBS are being dragged down enough for some lenders to be considering negative reprices , but the brunt of this morning’s weakness is being born by Treasuries. In terms of day-over-day change, MBS are right in line with yesterday and the reprices are a factor of beginning the day in stronger territory and moving weaker intraday. Treasuries also began the day in stronger territory after following European bond yields lower overnight, but nonetheless remained in their recent broadly sideways trend. The only caveat is that the range has been expanding as the week progresses. This looks like a bullhorn on a chart. What does it mean? Not much in this case. Historically, it could have been viewed as a series of high-conviction responses to disparate data and headline events. These days, it’s…(read more)
Via:: MBS MID-DAY: Pushing the Limits of Recent Weakness Ahead of 30yr Bond Auction
Share this article
