Posted To: MBS Commentary
Since mid-day on Monday, domestic bond markets hadn’t done much at all. Despite a slightly expanding range, the momentum was sideways as both higher highs and lower lows were being made. It wasn’t until today that yields finally took a significant step outside that mostly-sideways range. Unfortunately, it was a step in the wrong direction. The easiest place to point fingers is at the 30yr Bond auction. Objectively speaking, that’s not a bad way to go, considering the mostly-sideways range was still “mostly intact” until then. It may well have been the case that a stronger auction would have kept it intact. Instead, the auction was exceptionally weak, even though bonds had already weakened in the run up to it. Auctions give investors a chance to see where other investors…(read more)
Via:: MBS RECAP: Bonds Choose a Direction: Higher Yields
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