Posted To: MBS Commentary

Wednesday's 10yr Auction Could Cast a Big Vote on a Bounce With bonds coming into the session in much stronger shape, and with yields holding underneath recent highs at 1.62% for almost 2 weeks now, it's fair to start wondering if 1.62% is as high as we go for a while. Fortunately, one of the best possible litmus tests is on the docket for Wednesday with another record slate of 10yr Treasury notes to be auctioned. While today's strength is certainly hopeful, we'd wait to see how things are looking tomorrow afternoon before considering any adjustments in the outlook. We've been in similar positions recently only to get burned (17th times a charm though, isn't that what they say?). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:30 AM Much…(read more)

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Source: Mortgage News Daily