Posted To: MBS Commentary

Supply Storm Weathered (Could Have Been Worse) After yesterday's brisk sell-off in the bond market, today's 30yr bond auction was in a position to endorse the weakness or push back a bit. While it wasn't heroic, if we had to pick from those two choices, the auction definitely did more to push back against yesterday's high yields. 10yr yields were more than 3bps lower at the 3pm close and MBS were an eighth of a point higher. We'll need another day of ground-holding (or better) before getting more optimistic about holding this range, but today certainly could have been worse. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Producer Price Index (PPI, Inflation) MONTHLY: …………. .0.7 vs 0.4 f'cast ANNUAL, CORE: …… 4.1 vs 3.7 f'cast Jobless Claims 473k…(read more)

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Source: Mortgage News Daily