MBS RECAP: Bonds Sparkle Overnight, But Fade Early

Posted To: MBS Commentary

Treasury yields hit new intraday all-time lows overnight Traders were lined up to sell at the open (profit-taking) Weakness continued after stronger ISM data But bonds held near yesterday's closing levels 10yr yields rose from overnight lows of 1.32 to end the day at 1.373. Ohhh darn! In other words, the current push into all-time low rates encountered a bit of resistance today, though for no other reason than the fact that it's been so strong. These sorts of pushbacks are to be expected when bonds string together successive days of improvements--especially when they're doing so at long-term or all-time lows. This was evident at 8:20am this morning at the CME open. The CME open marks the beginning of the day for certain traders that won't be putting their trades in any earlier...(read more)

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