MBS RECAP: Strong Showing For Longer-Dated Bonds

Posted To: MBS Commentary

Strong Showing For Longer-Dated Bonds With the Fed's dot plot in focus yesterday, the associated drama was heavily weighted toward the short end of the yield curve. Relative to recent stability, 2yr Treasuries got destroyed while 30yr Treasuries were barely touched. MBS lean a bit shorter in duration than 10yr benchmarks, so it's no surprise to see them underperform today. If we let them compete with 5yr Treasuries, different story (i.e. don't read too much into "MBS underperformance" when the yield curve is making such big moves). No data tomorrow and limited data next week. The week after that brings another jobs report, and thus another chance to see the next big flash of volatility. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Jobless Claims 412k vs 359k f'cast…(read more)

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MBS RECAP: Strong Showing For Longer-Dated Bonds
MBS RECAP: Strong Showing For Longer-Dated Bonds

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