MBS RECAP: Too Soon To Hope For Support?
Posted To: MBS Commentary
Too Soon To Hope For Support? This week began with a decisive breakout to higher yields in the bond market. Trump's comments on stimulus have been a key source of volatility although the Treasury auction process proved to be a relevant consideration mid-week. Bonds managed to hold under the important 0.79% ceiling despite additional upbeat Trump comments on stimulus and a lackluster 30yr bond auction. That's a good sign, but it could also simply reflect traders closing short positions ahead of a 3 day weekend. Bottom line: it's not too soon to HOPE for support in the bond market, but perhaps a bit too soon to count on it. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 840k vs 820k f'cast , 849k prev Market Movement Recap 08…(read more)