Posted To: MBS Commentary

Calm Today. Bigger Volatility a Risk For Tomorrow Treasuries began the domestic session in modestly weaker territory after an uneventful overnight session. There was 2-way trading after the PPI data, but it soon revealed itself to be noise in a broader mover whereby yields were backing away from the technical floor at 1.42. Stocks lost ground, which also makes sense in a narrative where traders are circling the wagons ahead of tomorrow afternoon's Fed announcement. MBS outperformed moderately and were only down 2 ticks (0.06) from yesterday's closing levels at 4pm ET. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Core Producer Price Index 7.7 vs 7.2 f'cast, 6.8 prev Market Movement Recap 08:49 AM Moderately weaker overnight with 10s topping out at 1.443. Modest recovery after…(read more)

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Source: Mortgage News Daily