MBS RECAP: Rates Move Back Toward Recent Highs.

Posted To: MBS Commentary

Rates Move Back Toward Recent Highs. Bonds started the day only modestly higher after a fairly uneventful overnight session. Sellers surfaced even before the stronger ISM Services data, but they were out in full force afterward. Yields peaked less than an hour later and went mostly sideways for the rest of the day. MBS outperformed in the afternoon and hit their weakest levels in the last hour of trading (down more than a quarter of a point in UMBS 2.5 coupons). For the sake of context, MBS have done their fair share of outperforming recently as well. The reference to underperformance only pertains to the afternoon hours. Spreads between MBS and Treasury yields were fairly level, day-over-day. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm ISM Non-Manufacturing 61.9 vs 60.0 f'cast…(read more)

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MBS RECAP: Rates Move Back Toward Recent Highs.
MBS RECAP: Rates Move Back Toward Recent Highs.

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