MBS RECAP: Bonds Finally Make a Move. How Serious Is It?
Posted To: MBS Commentary
Bonds Finally Make a Move. How Serious Is It? After more than 2 months of a narrow sideways range and more than 3 weeks of an increasingly narrow trading range, bond yields finally broke out today. Is this the start of a new trend toward higher rates or just an incidental byproduct of a few key events? The answers are "probably not" and "probably" in that order, but the details matter. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) ADP Employment 749k vs 650k f'cast , 481k prev Q2 GDP (final) -31.4 vs -31.7 prev Chicago PMI 62.4 vs 52.0 f'cast, 51.2 prev Pending Home Sales +8.8% vs +3.4 f'cast, 5.9 prev Market Movement Recap 08:29 AM Stock prices and bond yields moved slightly higher to start the overnight session, then fell…(read more)