Posted To: MBS Commentary
Monday's half-day brought 2018 to a strongly positive conclusion for bonds. Today's full session picked up where Monday left off and then some . By the end of the day (after the 3pm CME close) 10yr yields were more than 5bps lower at 2.633%. Fannie 4.0 MBS cracked above 102-00 for the first time since May 2018. There were no overt motivations for the gains in terms of the usual suspects (econ data, news headlines, etc.), although analysts attempted to make a few claims to the contrary. The best explanation is that this is simply the way things played out with respect to trading positions in the new year. The fact that bonds were willing to diverge from stocks only adds to that case (i.e. bonds had their own agenda regardless of what stocks were doing). The only exception worth discussing...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://bit.ly/2LOOxAT
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