MBS MID-DAY: Green on The Screen, But No Time For Complacency

Posted To: MBS Commentary

I was going to title this mid-day post something like "uneventfully holding most of yesterday's losses," but I almost fell asleep just writing it. The point was supposed to be that the overall situation for bond markets is still pretty bad , regardless of this token bounce back from yesterday's weakness. Here are a few of the reasons: First of all, the bounce back leaves Treasuries very much in line with yesterday's post-sell-off levels. 10 yr yields were holding in a range of 2.147 to 2.165 for several hours after yesterday's sell-off and they're currently down to only 2.155. We'd really want to be seeing 2.135 at the close if we were going to take something positive away from today's session. Adding a layer of concern to the tepid rally is the fact that...(read more)

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