MBS RECAP: Rally Extends Many thanks to Silence on the Hill

Posted To: MBS Commentary

Currently could have long gone two means. We could have occur to uncover out that Friday&#039s “delay” in the vote on the healthcare bill was an real delay, or we could have quickly viewed that the bill was lifeless (at least in its latest variety, and at least for now). With nary a headline or newswire masking the healthcare bill as some thing that nonetheless exists in the realm of close to-expression chance, marketplaces quickly made the decision that previous 7 days&#039s delay was simply politicians&#039 way of expressing the bill was lifeless . To whatever extent a postponement still left hope alive for progress on fiscal policy, bonds had great rationale to be careful . To whatever extent the bill was considered as lifeless, bonds had great rationale to press on with the rally . And so they did. For the duration of the right away session, 10yr yields have been as reduced as 2…(read more)