MBS RECAP: More About Consolidating Gains Than New Weakness

Posted To: MBS Commentary

With an absence of significant economic events and the storm of the century bearing down on the Southeast, trading activity was understandably a bit lighter than yesterday. After a bit of morning volatility, bonds settled into a sideways pattern that left most of the week's gains intact. Bonds were actually stronger in the overnight session, despite European bond markets losing ground. That weakness followed headlines that suggested the ECB was a little farther along in mapping out its tapering plans than Draghi admitted yesterday. Not a huge deal, but somewhat relevant and just a little bit bearish for the bond complex. US bond markets didn't weaken until 8:20am (the CME open) and then again after 9:30am (the NYSE open). The fact that weakness waited for these two time frames suggest...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

from Mortgage News Daily http://ift.tt/2xjBwLp