Posted To: MBS Commentary
Modestly Strong, Uneventful Trading Day, Version 3 Last week conditioned us for Drama. Monday and Tuesday suggested the ride wasn't yet over. Against that unpleasant backdrop, the last 3 days of the week have been completely unfamiliar–especially today. The trading range was the narrowest of the week. The gains were by far the most linear (very little back-and-forth volatility throughout the day). Analysts in high flying aircraft might look at the day as some sort of response to tame inflation data, but that's not the story here (if data mattered today, stronger ISM numbers would have done more to push back in the other direction). As it stands, the steady drift toward lower yields is more suggestive of the shuffling of trading positions at the start of a new month. While we won't…(read more)
Source: Mortgage News Daily
