MBS RECAP: Losses Continue Despite Decent 5yr Treasury Auction

Posted To: MBS Commentary

Losses Continue Despite Decent 5yr Treasury Auction Today's 5yr Treasury auction was respectable with the investors bidding 2.37 dollars for each dollar offered–perfectly matching the recent average for that statistic. The yield award was slightly under the pre-auction expectation. These are the sorts of stats that–at the very least–leave the door open for the bond market to improve if there's some latent buying demand chomping at the bit. But in today's case, there was no visible reaction to the auction results. In fact, yields ended up drifting sideways to slightly higher by the end of the day, all while maintaining an uncharacteristically high volume profile for a Monday. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Durable Goods 1.8 vs 0.7 f'cast, -0.1 prev Core…(read more)

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MBS RECAP: Losses Continue Despite Decent 5yr Treasury Auction
MBS RECAP: Losses Continue Despite Decent 5yr Treasury Auction

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