Posted To: MBS Commentary
With 10yr yields less than half a bp lower and Fannie 3.5s and 3.0s a mere 1 tick lower, we’re effectively unchanged to end the day. That’s a victory after the volatility and weakness earlier in the session, but again, the rally was hungry for a constant supply of external motivation. That motivation came from several places today. Chief among them were the afternoon’s strong 30yr bond auction and big stock sell-off (which, itself, is ostensibly tied to an overly-aggressive slide in oil prices). Don’t ask me to make sense of this. Just this morning, lower gas prices were widely credited for the strong Retail Sales numbers, and of course the balance of talking heads characterize it as an economic boon. OK, I guess I’ll try to explain it anyway. Or at least, I’ll offer…(read more)
Via:: MBS RECAP: Strangely Volatile Session Leaves Bond Markets Unchanged
