Posted To: MBS Commentary
Slow Monday, But Late Warning Shots It was a slow trading day for the most part until the last 90 minutes. Until then, MBS and Treasuries were generally flat. As the day wound down, yields bumped up to the highs–right in line with the 1.295% technical level–and MBS coughed up a quick eighth of a point. That was enough for several lenders to reprice for the worse even though the weakness doesn't speak to any bigger picture issues. At worst, we could consider the late-day volatility to be a warning shot about bond trader defensiveness ahead of Wednesday's Fed announcement. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm New Home Sales -6.6% vs +3.0% f'cast, -7.8% prev Market Movement Recap 08:45 AM Stronger overnight. Yields fall in line with stock sell-off, bouncing in early…(read more)
Source: Mortgage News Daily
