Posted To: MBS Commentary
Yields Find a Floor Ahead of Month-End and Long Weekend Today's most notable feature was a paradoxical move toward higher yields immediately following a strong 5yr Treasury auction. There was nothing in the auction results that would allow the weakness to be rationalized and there were no other overt market movers at the time. We're left to conclude this is a byproduct of traders circling the wagons as Friday's month-end trading deadline approaches (markets are closed on Monday the 31st). In any event, we were looking for a resistance bounce after yields traversed most of their recent range in the past 4 days and for now, it looks like we found it. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:50 AM Weaker at first in the overnight session, but another…(read more)
Source: Mortgage News Daily
