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MBS RECAP: Bond Market Breakout is Here (The Bad One)

Posted To: MBS Commentary

Bond Market Breakout is Here (The Bad One) For days–and especially since last Friday–we've been increasingly worried that the 2-month bond rally was running out of steam and at risk of a reversal. The jury was technically out until all of our overhead ceilings were taken out. As of today, they are. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Core Producer Inflation (y/y) 0.3 vs 0.0 f'cast , 0.1 prev Market Movement Recap 08:23 AM Bonds much weaker overnight as yields finally break technical support at the .57/58 barrier. Quickly up to .62+. MBS starting out an eighth lower. Russian vaccine in the headlines, but it's a supporting actor at best. 10:42 AM Treasury yields at new highs (.646%) and MBS near the lows of the day, down 6 ticks (0…(read more)

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