MBS RECAP: Reasons For Both Hope and Fear In Today's Trading

Posted To: MBS Commentary

Reasons For Both Hope and Fear In Today's Trading Bonds have been in a consistent trend leading toward higher rates in the short term and that trend falls inside a similarly consistent up-trend in the bigger picture. On a hopeful note, today's early strength suggests the bigger-picture trend could offer a supportive bounce in the first half of the week. On a cautionary note, not only did bonds fail to gain much ground today, the buying was largely fueled by short covering (i.e. traders booking profits after having previously bet on rising rates). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:26 AM Bonds were expected moderately weaker after an orderly sell-off overnight. Stimulus, stocks, and auction trepidation are easy to blame for the move. 10yr is…(read more)

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MBS RECAP: Reasons For Both Hope and Fear In Today's Trading
MBS RECAP: Reasons For Both Hope and Fear In Today's Trading

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