Posted To: MBS Commentary

Bonds Turn Red Early, But Outright Losses Were Minimal The week began with refreshing stability and modest gains for bonds, but that only lasted a few hours before sellers pounced. Corporate debt issuance combined with a technical break of 1.30% in 10yr yields to spark a quick move higher mid-morning. MBS followed with a sell-off that shaved a quarter point off intraday highs, and prompted widespread negative reprices. That said, the outright level of additional weakness (vs Friday) was minimal in light of the issuance outlook. Traders will have bigger decisions to make later this week–especially on Wednesday (CPI + 10yr auction). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:37 AM Bonds trickled to slightly stronger levels in the overnight session and have managed…(read more)

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Source: Mortgage News Daily