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MBS RECAP: Still on a Fence as Bonds Work Through Early-Week Risks

Posted To: MBS Commentary

Still on a Fence as Bonds Work Through Early-Week Risks We closed out last week on a fence about the short term outlook for rates. On the one hand, Friday was fairly weak. On the other hand that weakness followed 3 great days of gains and could furthermore be rationalized as defensive positioning ahead of early risks in the week ahead. We made it through half of those risks on Monday (3 and 10yr Treasury auction) with minimal damage, but certainly no major gains. As such, bonds look like they're keeping their options open for now. We hope to get a better lay of the land after tomorrow's events (CPI and 30yr bond auction). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:41 AM Slightly stronger overnight, mostly thanks to friendly comments from ECB's Lagarde…(read more)

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