Posted To: MBS Commentary
As Fannie 3.5 MBS pushed over 104 and 10yr yields moved down toward 2%, it became increasingly clear that the bond market rally required an ever-larger supply of motivation to continue rallying. When we actually lost ground yesterday despite the some fairly negative news around the world, it looked like we’d reached the near-term limit and were consequently set to trade cautiously heading into tomorrow Fed Announcement. But in the overnight session, global financial markets dropped off another huge meal for US bond markets. For the second day in a row , the Russian Ruble fell in value more than any other session in 16 years–the last time Russia defaulted. If anyone still cares about oil prices, they too trended lower. Stocks were much weaker out of the gate and comments from Germany’s…(read more)
Via:: MBS RECAP: Hungry Bond Rally Finds More to Eat
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