Posted To: MBS Commentary
With 10yr yields at 1.952, we’re certainly not out of the woods yet, but we can at least hold out some hope of exiting the woods. That wasn’t such a given after yesterday’s push up to 1.99%. As details emerged regarding today’s corporate bond issuance, we began to see a clearer picture of yesterday’s weakness. (Read more about that in the MID-DAY if you like). The thesis of corporate bond issuance as far as Treasuries and MBS are concerned is that it puts upward pressure on rates. But if these deals constituted “new information” to us today, why were they moving markets yesterday? The reason is that the firms issuing debt are under no obligation to send us a courtesy heads-up that they’re selling bonds in order to hedge a big corporate deal The selling just…(read more)
Via:: MBS RECAP: Eye of the Corporate Debt Storm Helps Bonds Recover; Treasuries Trump MBS
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