MBS Day Ahead: Will 12+ Week Streak Continue For Friendly Fridays?
Posted To: MBS Commentary
If I accidentally jinxed it, the damage was already done in yesterday's MBS Huddle video , so we might as well talk about it. "Talk about what," you might ask? The clockwork-like tendency for MBS prices to close higher on Fridays vs Thursdays (or Thursday vs Wednesday on the case of the holiday-shortened week last week). The blue boxes point out this phenomenon below. The yellow box also counts per the "higher than Thursday" definition, even though we lost ground throughout the day. Is this some cutting edge analytical discovery or evidence of a market conspiracy? Not even a little bit (although I'd surely make all those claims and more were I to be pushing for twitter followers for my alarmist website). Remember, the bond market began trading coronavirus back in…(read more)