MBS RECAP: "Flat" is an Understatement

Posted To: MBS Commentary

"Flat" is an Understatement Recent trading activity lies in stark contrast to the drama seen earlier in 2020. Even at the beginning of June, bonds still had an interesting (and scary, at first) story to tell as yields spiked in response to stronger econ data and coronavirus hopes. Both of those factors remain in play, yet bonds are now back near their best post-covid levels and trading in one of the narrowest ranges ever. What changed? Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:03 AM Stocks were stronger overnight as EU leaders approved a much-debated pandemic recovery package. Bonds weren't too bothered as central bank buying continues. MBS and Treasuries are starting out nearly unchanged. 10:54 AM Bonds have drawn…(read more)

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