MBS RECAP: Bonds Improve After Treasury Auction; Why MBS Are Lagging

Posted To: MBS Commentary

Bonds Improve After Treasury Auction; Why MBS Are Lagging Bonds began the day weaker, but improved steadily after the 10yr Treasury auction. MBS underperformed–partly because the Treasury auction brings more direct benefit for Treasuries, but for a few other reasons as well. We'll discuss those (and whether or not they're important) in today's recap video. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm 10yr auction grade: A Market Movement Recap 08:26 AM Bonds are unchanged despite weakness in EU bond market. Yields were as high as 1.631 (now 1.608). MBS are 1 tick weaker (0.03) at 102.59 (2.5 coupons). 11:44 AM Slightly weaker into the 9am hour, then stronger after the 9:30am NYSE open. Levels are back in line with the first update (i.e. close to unchanged). 01:06 PM More…(read more)

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MBS RECAP: Bonds Improve After Treasury Auction; Why MBS Are Lagging
MBS RECAP: Bonds Improve After Treasury Auction; Why MBS Are Lagging

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