MBS RECAP: Bearish Bond Trend Continues

Posted To: MBS Commentary

Bearish Bond Trend Continues Looking back at MBS or Treasuries over the past few weeks reveals a clear termination of a rally trend at the end of September and a similarly well-established bearish trend throughout October. Treasury yields are the highest since early June and MBS aren't too far away from their weakest levels in months. Stimulus prospects continue applying pressure, but we should also consider the same discussion we had at the end of September. Simply put, sometimes momentum just runs the other direction with the start of a new month–especially if the previous month was moving almost exclusively in the other direction. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Housing Starts 1.415m vs 1.457m f'cast, 1.388m prev Building Permits…(read more)

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