MBS RECAP: Stocks vs Bonds; Bonds vs Supply

Posted To: MBS Commentary

Stocks vs Bonds; Bonds vs Supply There's a fairly strong case to be made for stock market weakness helping bond yields remain lower than they otherwise might be in September. As such, we'll be watching the bond market's reaction very carefully in the event of a rebound. Stocks notwithstanding, MBS are coping with higher supply (more locks from originators), which is making it hard for MBS to keep up with gains in Treasuries. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:20 AM Stocks were down at a fairly quick pace overnight–especially in Europe–and the bond market was there to pick up the pieces. 10yr yields improved 4bps to start the day just under .66 and 2.0 UMBS are up an eighth trading near 103.00 10:49 AM Treasury…(read more)

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MBS RECAP: Stocks vs Bonds; Bonds vs Supply
MBS RECAP: Stocks vs Bonds; Bonds vs Supply

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