Posted To: MBS Commentary

Bonds Struggle to Hold Gains Despite Stock Rout As of the 3pm CME close, 10yr yields were higher on the day. Even though the losses were minimal, they're not what we'd expect given a 3% loss in stocks and a market that has frequently been trading risk-on/risk-off surrounding various covid/stimulus headlines. There were no salient market movers behind the bond weakness. MBS underperformed at first, but did a better job of holding their ground as Treasuries weakened later in the day (2.0 UMBS are unchanged at the moment). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:36 AM Markets are in the midst of a "risk-off" move as covid case counts surge worldwide and bonds correct toward lower yields after testing the upper…(read more)

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Source: Mortgage News Daily