Posted To: MBS Commentary

MBS Outperform on Curve Steepening and Corporate Issuance The yield curve has been almost exclusively in "flattening" mode since June, and aggressively so. This means that longer term Treasuries (like 10s and 30s) have risen at a slower pace than 2yr and 5yr Treasuries. But traders can't do the same old thing every day and today was one of those counter-trend days. The steepening was far from extreme, but it was enough to help MBS do a bit better than 10yr notes. MBS also benefited from an active slate of corporate bond issuance (which weighed down the Treasury complex, relatively). Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Retail Sales 1.7 vs 1.4 f'cast Retail Sales Excluding autos/gas 1.4 vs 0.5 previously Import prices 1.2 vs 1.0 f'cast Builder Confidence…(read more)

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Source: Mortgage News Daily