MBS Week Ahead: Bonds Begin Week Storing Energy For a Breakout

Posted To: MBS Commentary

Last Friday's AM commentary had a detailed write-up on the significance of " month-end bond buying ." Here's a link to that, and here's a link to our primer on the topic. With today being the last day of July, it's possible we'll still see some random momentum due to the month-end process, but would expect a relatively higher proportion of traders to have gotten those housekeeping trades out of the way last week given the generally lower liquidity of summertime Mondays. The week ahead is no slouch though! There is a slew of top tier economic data, and some of it is exceptionally important . Specifically, tomorrow morning brings the Fed's favorite inflation gauge: year-over-year Core PCE. They'd like that to be at 2% in a perfect world. It's currently...(read more)

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