Posted To: MBS Commentary

Much like February 26th, overnight strength in the bond market allows us to ask the same obvious question: "is this the bounce?" Much like Feb 26th, the answer is definitely maybe. As of right now, we'd need a much bigger rally to even get serious about the conversation, but it's certainly "nice" to start the day with a quarter point of improvement in MBS and a 6bp rally in the 10yr. Can we glean anything from the inspiration for this rally? This is where things get frustrating from an analytical standpoint. While volumes are strong, the trading is not being driven by the sort of big, obvious motivations that we'd like to see. There's no news headline, economic report, or bond auction to credit for the shift. Asian accounts simply clocked in for the day and…(read more)

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Source: Mortgage News Daily