MBS Day Ahead: Bonds Definitely Scored This Week, But Can They Convert?

Posted To: MBS Commentary

If 2018 is a football game for bond markets, this week's trading through yesterday afternoon represented our first touchdown (let's not talk about how many the other team has. It's more than 1 though). Today, then, is our chance to convert the point after attempt and build some positive momentum for the rest of the game. Unfortunately, it's also our chance to leave that measly 6 points on the board, such that we're seeing something like "53-6" by the end of the game. Bonds are beginning the day under some pressure , with 10yr yields clearly viewing anything under 2.795% as hot lava, despite slightly better gains in European bond markets and continued losses for stocks. Bouncing there means bonds are shying away from a more committed break of the recent trend. This...(read more)

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