Posted To: MBS Commentary

Last night, a new stimulus plan was floated to Pelosi by Mnuchin. In theory, it includes provisions for several democratic sticking points, thus offering the most promise yet of a stop-gap stimulus/gov funding bill–the one it seems that even republicans view as critically important to pass before Christmas. Combined with skittish buying demand ahead of today's 10yr Treasury auction, yields moved higher to start the day, and are once again moving close to a showdown with recent ceilings. Apart from the 1pm Treasury auction and the constant threat of new developments on the stimulus front, there are no big ticket market movers on tap. Really though, the short term is ALL about stimulus. Bonds know it's coming, but they don't know if lawmakers will make good on recent comments about…(read more)

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Source: Mortgage News Daily