MBS RECAP: Locking vs Floating After Underwhelming "Rally Day."

Posted To: MBS Commentary

Locking vs Floating After Underwhelming "Rally Day." The recent losing streak in the bond market made it increasingly likely that we'd see a win this week. Ideally, it would have aligned with a strong response to Wednesday's 10yr auction, but instead, we got a halfhearted version on Tuesday. While this is technically a tactical cue to float for the most risk tolerant clients, that's an aggressive strategy until we see how the market reacts to the 10yr auction. Either way, the bigger picture rising rate trend remains easily intact. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:31 AM Bonds improved overnight as stocks remained in check and European bonds joined in the short-covering trade. A Spanish bond auction (of all the crazy things) was…(read more)

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MBS RECAP: Locking vs Floating After Underwhelming "Rally Day."
MBS RECAP: Locking vs Floating After Underwhelming "Rally Day."

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