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MBS RECAP: What's Up With Bonds And What Might Happen Next?

Posted To: MBS Commentary

Corporate Bonds Making Life Tough This Week As feared and expected, the combination of Treasury auctions and a hefty slate of corporate issuance continued to weigh on bonds today. A flat-to-slightly-stronger start quickly gave way to weakness as investors made room for corporate bonds. A large multi-tranche deal from Intel was the worst offender. Traders aren't eager to catch this falling knife until more of the supply is digested (that would be tomorrow at the earliest). At that point we expect at least a few days of recovery before the trend shows its true colors. For today, it was worth a few more bps in 10yr yields and about an eighth of a point in MBS as of 3pm ET. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:38 AM Flat to slightly stronger at first…(read more)

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