MBS RECAP: Negative Momentum Remains Threatening Ahead of Jobs Report

Posted To: MBS Commentary

Negative Momentum Remains Threatening Ahead of Jobs Report We came into today hoping (but not necessarily expecting) to see bond traders eagerly snap up inventory at these new, lower prices (aka higher yields), but alas! More selling was in store. Traders woke up early to push 10yr yields to another long-term high. Most of the weakness was intact by 9:30am and the rest of the day was mostly sideways for Treasuries. MBS had another bout of selling following the Fed's 10am-1020am buying operation, but even after that additional weakness, MBS outperformed on the day. While tomorrow's jobs report may not be the trading motivation markets are looking for, NFP day nonetheless serves as a central meeting point for a new month of trading idea in the bond market. In other words, while the jobs…(read more)

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MBS RECAP: Negative Momentum Remains Threatening Ahead of Jobs Report
MBS RECAP: Negative Momentum Remains Threatening Ahead of Jobs Report

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