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MBS RECAP: MBS Underperforming Treasuries, But Broader Trends Are Decent

Posted To: MBS Commentary

MBS Underperforming Treasuries, But Broader Trends Are Decent The mortgage market continues coping with the combination of last week's LLPA news and a generally high level of supply. One hurts bond prices relative to Treasuries. The other hurts mortgage rates relative to bonds. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 1.106m vs 925k f'cast , 963k prev Philly Fed Index 17.2 vs 21.0 f'cast , 24.1 prev Market Movement Recap 08:11 AM Bonds improved nicely overnight with Treasury yields pulled lower by an ongoing rally in European yields. The 10yr is 4bps lower at .644 and 2.0 UMBS are opening up by more than an eighth of a point. 10:38 AM Treasuries holding gains. MBS underperforming significantly with 2.0 coupons down roughly…(read more)

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