MBS RECAP: Which Way Do We Go?
Posted To: MBS Commentary
Which Way Do We Go? Markets continue trying to sort out the prospects for a recovery vs the risk of covid-19 resurgence. This is resulting in strong correlation between stocks and bonds. Both have leveled off so far this week as they wait for more info. Both are looking at each other wondering "which way do we go?" We'll know it when we see it and we're not seeing it today. Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying Housing Starts: 974k vs 1.095m f'cast, .934k prev (up 4.3%) Building Permits: 1.22m vs 1.228m f'cast, 1.066m prev (up 14.4%) Market Movement Recap 07:57 AM Bonds were inconsequentially weaker overnight as stocks gained half a percent in futures. MBS took their lumps yesterday on heavy supply and look to start today just a hair stronger…(read more)