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MBS RECAP: Rising Rate Trend Changing Course or Just Leveling Off?

Posted To: MBS Commentary

Rising Rate Trend Changing Course or Just Leveling Off? After a modest day of gains on Friday, bonds covered some more serious ground today. 10yr yields were more than 4bps lower at the 3pm CME close, and roughly 8bps lower versus Friday's highs. Does this mean the prevailing negative trend is reversing? Or are we simply taking a break while bonds wait for more info? Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) New Home Sales 959k vs 1.025m f'cast, 994k prev Market Movement Recap 08:19 AM Bonds were stronger out of the gate in Asia, largely following weakness in the stock market. Similar correlation hit once again at the start of the European session where 10yr yields (and stocks) hit their lows together shortly after the European open. Both have…(read more)

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