MBS Day Ahead: Bonds Try to Keep Big-Picture Hope Alive; Light Data Calendar

Posted To: MBS Commentary

There is almost no significant economic data on tap for this week. Friday is really the only contender with Import/Export Prices and Consumer Sentiment. Neither of those are typically big market movers, but both may get more attention than normal due to their inflation implications (Consumer Sentiment speaks to inflation via its "inflation expectations" components). Potential market movers are on the calendar though. This is a Treasury auction week, and it's the more relevant rotation (3, 10, and 30yr on Tue, Wed, and Thu respectively). The 3yr doesn't tend to move markets for MBS and longer-term Treasuries, but with a crazy enough result, anything's possible. The 10 and 30yr auctions will continue the discovery process that lets traders know more about how other traders...(read more)

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