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MBS RECAP: Bonds Remain Resilient With Help From ECB

Posted To: MBS Commentary

Bonds Remain Resilient With Help From ECB This morning's ECB announcement proved to be moderately bond-friendly. Combined with weaker Jobless Claims data, it was enough to get bonds started off on a strong note. Gains continued throughout the European trading session. Yields bounced modestly after that but found solid support at 1.27% in terms of 10yr Treasuries–well under the "new frontier" pivot point for the week at 1.30% That said, we're more interested in a general range between 1.10% and 1.40% than the small scale day-to-day volatility that occurs inside that range. Next week's Fed announcement is the next scheduled event that has even a remote chance of informing our stay in such a range (or our departure). Even then, it's hard to be too preoccupied with the…(read more)

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