Posted To: MBS Commentary

3-Day Weekend for Volatility; Waiting on Supply After Friday's bond market rout, today's relatively calm trading data stood in stark contrast. On one hand, it's nice not to see losses accelerate further. On the other hand, it would have been nice to see Friday afternoon's rally extend into the new week. As it stands, traders may be waiting to see how this week's bond market supply is digested, both in terms of Treasury auctions and the general glut of corporate bond supply. Losses were minimal–especially in MBS where 2.5 coupons remained above Friday's pre-NFP levels. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:42 AM Slightly weaker overnight. If stimulus deal passage is having any effect, it's barely noticeable. There was short…(read more)

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Source: Mortgage News Daily