Posted To: MBS Commentary

Bonds Find Their Range Ahead of Jobs Report The first 2 days of the month (yesterday and the day before) were all about a quick adjustment into weaker territory for the bond market. Today served as confirmation that the adjustment was complete. The result? 10yr yields are ready to digest tomorrow's jobs report from a relatively high perch in the low 0.9's. MBS are still in their own world, and nowhere near the weaker levels seen in early November. Moreover, rates are so high relative to MBS prices that lenders don't need to make big changes to rate sheets until bond market weakness gets extreme. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 712k vs 775k f'cast, 787k prev ISM Non-Manufacturing PMI 55.9 vs 56.0 f'cast, 56…(read more)

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Source: Mortgage News Daily