MBS RECAP: Putting MBS Underperformance in Perspective

Posted To: MBS Commentary

Putting MBS Underperformance in Perspective Rates are low. Unless coronavirus wins, rates should continue to gradually move higher, but not in a straight line. At times (like today), we may see the mortgage market weaken while Treasuries improve. Today's video breaks that down in easily digestible detail. Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying Market Movement Recap 08:43 AM Bonds began the overnight session fairly flat but popped (higher in yield) in concert with stock prices on news that China was planning on expanding US agricultural purchases. Early domestic trading brought a bit of follow-through. 10yr up 2.8bps at .735. UMBS 2.0 down an eighth vs yesterday. 11:47 AM Nice bounce at .74% ceiling in 10yr yields, and now below .72% pivot point. Nearly unchanged now…(read more)