Posted To: MBS Commentary
For being a day that followed 2 sessions of gains in a month where 2 sessions of gains is nearly unheard of, today got off to a great start . There were new all-time lows in German Bund yields and US 10s were all the way down to 1.931 at their best levels. By the end of the day though, they’d be exactly 10bps higher. The weakness started right off the bat after a round of mixed economic data at 8:30am. Perhaps it was the stronger Durable Goods headline or the big increases in Real Wages in the CPI data. Whatever it was, bonds didn’t like it. Tradeflows consolidated inside yesterday’s range heading into the 7yr auction, but that was the last we’d see of yesterday’s range. A weak auction and a glut of corporate bond issuance pushed rates rapidly higher in the afternoon. The…(read more)
Via:: MBS RECAP: Strong Start, Much Weaker Finish as Corporate Deals Hit Rates
