Posted To: MBS Commentary

Brexit Behind Selling Spree, But Bonds Defend The Ceiling While headlines regarding the potential veto of the covid relief bill got plenty of attention in the news, it was actually Brexit that accounted for most of the market movement. Early reports from several sources suggested both sides were finally in agreement and that a deal could be finalized as early as tonight. With that, European yields popped higher, bringing equities and US yields along for the ride. The selling spree in bonds was over by 11am and the rest of the day was steady to slightly stronger (both for Treasuries and MBS). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Core PCE 1.4 vs 1.5 f'cast, 1.4 prev Durable Goods 0.9 v 0.6 f'cast, 1.8 prev Jobless Claims 803 vs 885 f'cast…(read more)

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Source: Mortgage News Daily