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MBS RECAP: Surprisingly Swift Selling in The Bond Market; What's Next?

Posted To: MBS Commentary

Surprisingly Swift Selling in The Bond Market; What's Next? This week has been one of the most surprising selling sprees in bonds in the post-covid era. Just when you think we've surely seen enough selling to bring buyers in, it's right back to new long-term high yields and significantly lower MBS prices. That bounce is coming, to be sure, but it's a risky proposition to bet on it. Moreover, when it happens, it changes nothing about the broader trend toward higher yields that's been intact for more than 6 months. This week just happens to offer a more abrupt adjustment to the pace of that trend. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Markit PMI Composite 58.8 vs 58.7 prev Existing Home Sales 6.69m vs 6.61m f'cast, 6.65m prev Market Movement Recap 08:28 AM…(read more)

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