MBS MID-DAY: Nothing Like Yesterday

Posted To: MBS Commentary

What is there to say about a day that has been so flat and uninteresting--especially compared to yesterday's craziness? Treasuries have essentially returned to the same old trading pattern that dominated the action before yesterday's rout. In fact, when we look at the charts below of MBS and Treasuries we can see just how flat 4 out of the past 5 days are. Fingers crossed, the pre-Fed selling spree ran its course yesterday. We can talk about some of today's specifics , but the caveat is that nothing short of another snowball movement in markets really matters until the Fed events tomorrow afternoon. In other words, if we're flat, things are boring. Things weren't so boring for German bond markets overnight as the country's 30yr 'Bund' auction failed to garner...(read more)

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