MBS RECAP: Treasuries Get The Glory as MBS Hold Ground

Posted To: MBS Commentary

Glory was limited, in general, today. Most of it went to Treasuries as opposed to MBS. Put in plainer terms, 10yr yields fell 2-3bps on the day while MBS were generally unchanged. In thinking about what's up with that, we should keep the following bullet points in mind: It's the week of month/quarter-end. This doesn't necessarily favor Treasuries, but it CAN favor just about any market sector depending upon how money managers are forced to adjust portfolios to match certain indices. Read more about month-end buying HERE if you're curious. Much of the positivity was driven by European trading. MBS are one more degree removed from the global bond market effect. Treasuries logically get more benefit from gains in European bond markets. MBS are coming off one of their best streaks...(read more)

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