Posted To: MBS Commentary
Do Today's Gains Mean The Selling Spree is Over? After some initial weakness brought 10yr yields back in line with yesterday's highs, bonds managed to calm down enough eke out a small victory by the 3pm close. This is a welcome change in light of the recent selling spree, but that change had already occurred as of yesterday. Today's mostly-sideways tone is better viewed as a confirmation of yesterday's leveling-off. From here, the goal will be to determine whether this new consolidation is here to confirm recent weakness or to take up arms against it. From a strategy standpoint, although there's a chance this means the selling spree is over, we'd still need to see a stronger move down and out of this week's range to confirm it. Econ Data / Events Fed MBS Buying 10am…(read more)
Source: Mortgage News Daily
