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MBS RECAP: Floating, Locking, and Reasons For Sideways Rates (Including Politics)

Posted To: MBS Commentary

Stocks vs Bonds; Bonds vs Supply There's a fairly strong case to be made for stock market weakness helping bond yields remain lower than they otherwise might be in September. As such, we'll be watching the bond market's reaction very carefully in the event of a rebound. Stocks notwithstanding, MBS are coping with higher supply (more locks from originators), which is making it hard for MBS to keep up with gains in Treasuries. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Existing Home Sales 6.0 mln vs 6.0mln , 5.86 prev Market Movement Recap 08:28 AM Bonds were closed during Asian hours, but futures trading was flat. The European session brought modest weakness that mostly lined up with resilience in equities. 10yr Yields are roughly unchanged…(read more)

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