MBS RECAP: Bond Markets Quietly Hold Ground Despite Hurdles

Posted To: MBS Commentary

Modest losses for Treasuries and MBS by the close Should have been worse judging by stock/oil gains Corporate bond supply was big--also typically bad for Treasuries/MBS So in relative terms, bonds had more of a sideways day (instead of the modest losses). Bigger picture momentum remains in limbo Bond markets lost only a modest amount of ground today, effectively moving sideways in the bigger picture. This didn't look like a given during the morning hours when 10yr yields were up by more than 4bps, but things quickly calmed down. Ultimately, both Treasury yields and MBS prices were able to hold inside Friday's range (which was already fairly narrow in the recent context). Even though trading levels were slightly weaker, there were a few redeeming qualities. First of all, both stocks...(read more)

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