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MBS RECAP: MBS Outperformance is Actually Helping Rates

Posted To: MBS Commentary

MBS Outperformance is Actually Helping Rates Overnight news of Trump's covid diagnosis caused some volatility in markets that was poised to help the bond market today, but upbeat headlines on fiscal stimulus pushed back in the other direction. The result? Same old range for Treasuries, but MBS are pushing the stronger boundary of their range over the past 45 days. Mortgage rates have actually responded, which is notable in this day and age where lender capacity constraints have such a big impact. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Nonfarm Payrolls 661k vs 850k f'cast, 1022k prev Unemployment Rate 7.9 vs 8.2 f'cast 8.4 prev Participation Rate 61.4 vs 61.7 f'cast (offsets drop in unemployment rate) Consumer Sentiment 80.4 vs 79.0…(read more)

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