Posted To: MBS Commentary
It was a fairly ugly day for bond markets. MBS are down nearly a half point. Most lenders repriced negatively at least once, and rate sheets are at their weakest levels in over a month. The underlying technical picture suggests this is simply an aggressive exploration of a narrow pre-Fed range. Reason being: 10yr yields have cut a range from roughly 1.8 to 2.0 for the past 6 weeks –ever since the last FOMC Announcement. That might seem like a healthy size for a range, but historically, April has been one of the most narrow months on record. Considering the ‘marking time’ for end-of-day technical levels in Treasuries is 3pm, and that we were at 1.975 at the time, we can actually say that the medium-term range held up perfectly for the entire time. The conclusion here is not immediately…(read more)
Via:: MBS RECAP: Mini-Meltdown Ahead of Fed
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