MBS RECAP: Surging Stocks Pull Yields Higher After Strong Start

Posted To: MBS Commentary

Bonds start strong. Good MBS gains and a few positive reprices early Everything went south as oil jumped off lows Stocks jumped even higher and bonds were forced to go along with the "risk-on" moves. Fannie 3.0s end an eighth lower at 102-14--almost a half point drop from the highs. Bond markets began the day in strong territory, building on yesterday's positive reversal . 10yr yields were several bps lower at the open and bonds continued to rally through 10:30am. Incidentally, the 10am economic data was NOT a factor in the bond market strength. New Home Sales came in much weaker than expected, but it was really the 9:45am Markit Services PMI that gave the bond rally its final push of positive momentum. The market data was a blessing and a curse for bonds because it served as...(read more)

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