Posted To: MBS Commentary

Strong Move in Treasuries But MBS Underperform (Significantly) While much of the world of finance and institutional investment seemed to be preoccupied with day trading some truly epic ridiculousness via Game Stop, the bond market was doing a few interesting things of its own. Treasuries jumped out to an early lead with help from Europe, but several big trades helped yields move even lower after the 10yr broke an important floor at 1.075%. MBS had a completely different day with a significant amount of underperformance during and after the Fed's final buying operation of the day. At 4pm, UMBS 1.5 coupons were roughly unchanged on the day while 10yr Treasuries were nearly 5bps lower in yield! Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement…(read more)

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Source: Mortgage News Daily