MBS Day Ahead: Hoping to Build on Recent Power With Uncertain Month-Finish Strengthen

Posted To: MBS Commentary

In a single of yesterday&#039s updates ( THIS Just one , to be unique), we talked about the part that month-end bond shopping for was probable enjoying powering the scenes. Lengthy tale quick, when we see bond market place toughness at the end of the month that doesn&#039t line up very well with at minimum a single of the typically correlated marketplaces (Yen, stocks, European bonds, and other individuals all just take turns donning this hat), it&#039s good to assume that the obligatory month-end tradeflows are the essential thought. I would go so far as to say it was yesterday&#039s driving drive for bond gains, and that can elevate concerns about now&#039s potential to retain the exact same development alive. In the spirit of the month-end buying and selling dialogue, retain in thoughts that there&#039s only a specific volume of month-end trades to be executed. If we think we saw a…(read additional)

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