MBS RECAP: Weaker Today Means Boring Week Overall

Posted To: MBS Commentary

The week began on Tuesday, for all intents and purposes. July's "month-end" trading generally took place by last Friday and Monday was left as a mere afterthought. Yields fell nicely on Tuesday as "new month" trades unwound July's month-end weakness, perhaps getting some help from ultra-weak GM sales numbers (I know... this may be the first time we've brought "auto sales" into the rate analysis arena). Rates kept trickling lower from there as traders priced-in a weaker-than-expected jobs report. After all, a preponderance of anecdotal evidence suggested the median forecast was a bit too high this time around. But that's the great/funny/frustrating thing about NFP: it always reserves the right to play by its own rules. Today was one of those days...(read more)

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