Posted To: MBS Commentary

Small, Defensive Shift Heading Into The Weekend The highest core inflation in decades proved to be no big deal this morning. In fact, bonds rallied. Unfortunately, that set up for a technical selling opportunity as traders pared long positions heading into the weekend. The selling stalled right at the 1.53% technical level in 10yr yields. We'll hope that ceiling continues to hold and we'll send out another alert if it doesn't (provided MBS are following suit). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core PCE y/y 3.4 vs 3.4 f'cast, 3.1 prev Consumer Sentiment 85.5 vs 86.5 f'cast, 86.4 prev 1yr inflation expectations down 0.4% from May 5yr inflation expectations down 0.2% from May Market Movement Recap 08:42 AM Stocks and bonds both popped modestly stronger after…(read more)

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Source: Mortgage News Daily