Posted To: MBS Commentary
Strong 10yr Auction Reinforces Friendly Trend Bonds charged into the domestic session making surprisingly swift gains amid a relative absence of justification. We talked more about that in the AM commentary. The key event since then has been much easier to identify. Yields clearly moved higher in anticipation of the 1pm 10yr Treasury auction, and immediately adjusted lower after the strong results. While it wasn't enough to get us back to the day's best levels, simply holding a 4-5bp gain on the day is a big victory in technical terms. MBS didn't do quite as well but are nonetheless near their best levels in months. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:11 AM Stronger overnight with Europe. More technical triggers and short-covering snowballs…(read more)
Source: Mortgage News Daily
