Posted To: MBS Commentary
The morning and early afternoon hours were mildly disconcerting for bond markets as recent losses extended. Even so, most of the losses were in before 9am. That had the added benefit of insulating rates from most any reprice risk. Finally, although we wouldn’t realize it until the late afternoon, it also set us up for positive reprices as bonds came charging back late in the day. The justification for the afternoon bounce is a complex and mysterious subject depending on how much certainty you want. Now… it’s not for nothing that I’ve spent the last two days discussing the implications of the holiday-inspired trading volume. As recently as this morning I talked about it equating to the proverbial ‘jury’ being out. In that sense, any seemingly confusing market movement could…(read more)
Via:: MBS RECAP: Afternoon Bounce For Bonds After Weak Start
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