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MBS RECAP: How Does Today's Big Sell-Off Affect The Bigger Picture?

Posted To: MBS Commentary

How Does Today's Big Sell-Off Affect The Bigger Picture? Bonds sold off somewhat aggressively this afternoon following the 30yr bond auction, but not before staging an impressive recovery in the face of the highest core inflation reading in nearly 30 years. The net effect is a bond market that continues to trade at the lowest yields in 5 months, with the exception of the past week. Today's video discusses how this impacts the bigger picture. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Monthly CPI 0.9 vs 0.5 f'cast, 0.6 prev Core Annual CPI 4.5 vs 4.0 f'cast, 3.8 prev Market Movement Recap 08:42 AM Weaker, then stronger, then weaker after hot inflation data. 10yr yields are up 2 bps at 1.388% and 2.0 UMBS are down 2 ticks (0.06) at 101-06 (101.19). 12:42 PM bonds recovered…(read more)

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