MBS RECAP: Staggering MBS Outperformance Easing Negative Momentum Pain

Posted To: MBS Commentary

Staggering MBS Outperformance Easing Negative Momentum Pain Bonds are in the throws of an extended negative momentum move that's been in place throughout October. At times, stimulus-related headlines have accounted for volatility during this move. Today was one of the handful of weaker days for Treasuries, yet MBS are down only 1 tick heading into the end of the day. They've been doing this a lot lately, and it makes it even easier for lenders to avoid raising rates nearly as quickly as the broader bond market suggests. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 787k vs 860k f'cast, 842k prev Existing Home Sales 6.54m vs 6.3m f'cast, 5.98m prev Market Movement Recap 08:30 AM Bonds opened slightly stronger in Asia and remained…(read more)

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