Posted To: MBS Commentary

MBS-Specific Volatility Today, But No Major Change to Bigger-Picture A fresh (or perhaps "slightly less stale") take on stimulus prospects pushed bond yields higher overnight. Domestic hours were calm until MBS lost their composure in the afternoon. It wasn't a catastrophe, by any means, but it highlighted the issues that can sometimes be caused by illiquidity (issues not seen elsewhere in the bond market today). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Wholesale Inventories 1.1 vs 0.9 f'cast, 0.9 prev 10yr Auction: .951 vs .947 f'cast, 2.33x btc vs 2.41x avg ( what's this? ) Market Movement Recap 09:02 AM Moderately weaker overnight after new stimulus pitch (Mnuchin adding some $$ to sweeten the deal for democrats… seen…(read more)

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Source: Mortgage News Daily