Posted To: MBS Commentary
It’s been an uneventful day so far for bond markets, but a noticeably stronger one. The overnight session got thing off to a positive start as Treasuries made gains during Asian market hours. The onset of European trading pushed us back in the other direction, but not enough to bring domestic bonds into negative territory. As such, both MBS and Treasuries opened near Friday’s strongest levels. From there, they’ve added to the gains , with the economic data being the easiest explanation. Every report has been weaker than expected this morning with Industrial Production being the biggest miss. That worked in our favor as it was the biggest report of the morning. Both stocks and bonds traded that data as if it downgraded expectations for an early Fed rate hike, but only to a small…(read more)
Via:: MBS MID-DAY: Slow but Positive Morning; Holding Gains After Data
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