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MBS RECAP: Snowball Rally Reinforces Post-Payrolls Opportunities

Posted To: MBS Commentary

Snowball Rally Reinforces Post-Payrolls Opportunities Last week's jobs report created an opportunity to ride whatever sort of wave of positive momentum we may have seen in the present week. After a noncommittal start yesterday, today's session delivered. An early short squeeze pushed 10yr yields more than 5bps lower and bonds didn't lose much of that by the end of the day. MBS reluctantly improved as well, despite significantly underperforming vs Treasuries. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:51 AM Big bond rally starting in the 6am hour on internet outages, but accelerating in the 8am hour on friendly Bank of Japan talk and a general short squeeze . Big block trades contributed to the momentum. 12:28 PM Treasuries have cooled off in a more…(read more)

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