MBS RECAP: Curve Trade Keeps MBS Flat Again

Posted To: MBS Commentary

Trading activity was fairly decent in bond markets today--especially considering the seasonal norms, though this is largely a factor of Thanksgiving falling on the 26th. That means that there will only be one more full trading day in November, and participants aren't expecting it to be awash in liquidity. Combined with favorable month-end trading demand , it's fair to assume that the boost in volume is due in large part to early month-end trading. Then there's the matter of next week's significant events (ECB Meeting and NFP) that are likely increasing traders' urges to be positioned appropriately. Volume is one thing. Market movement is another. We're just not seeing much movement this week, suggesting deeply entrenched positions on either side of a narrow battlefield...(read more)

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