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MBS RECAP: MBS Only Slightly Better While 10yr Shines

Posted To: MBS Commentary

MBS Only Slightly Better While 10yr Shines As discussed in the day ahead, the bond market is in the midst of repricing its assumptions about the yield curve after Wednesday's Fed forecasts. Rate hike size and timing is being given just a bit more respect, and previous trades betting on a steeper yield curve are quickly covering. That translates to losses in 2-3yr bonds and gains in the longer end of the yield curve. Bottom line: longer-lasting bonds are doing the best. MBS don't last as long as 10yr Treasuries so they're not doing as well. The end. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:52 AM Stronger overnight with 10yr revisiting yesterday's lowest yields around 4am. Weaker at the start of the domestic session (back to unchanged) after…(read more)

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