Posted To: MBS Commentary

Heavy Issuance Weighs on Bonds We knew bonds would be skittish about Treasury auctions this week, but the defensiveness began early owing to a big glut of corporate bond offerings. Amazon led the way, accounting for nearly $20bln of the rather epic $34+ bln on the day. Those are numbers we only ever see when one big player is bringing one of the year's biggest bond offerings to the table. How big is $34bln of investment grade debt if it hits all on one DAY? The best way to answer that is to simply remember the Fed only adds $40bln of new MBS in an entire MONTH. The damage was minimal, all things considered, with MBS only losing an eighth of a point as of 4pm ET and 10yr yields up 2bps to 1.60%. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:42 AM modestly weaker…(read more)

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Source: Mortgage News Daily