MBS RECAP: Great Bounce After Auction. What Now?
Posted To: MBS Commentary
Great Bounce After Auction. What Now? We were hoping–perhaps even expecting (to some extent)–to see the recent uptrend in yields give way to period of correction either today or tomorrow. "Period" is intentionally vague as we have no idea how long the good vibes will last. All we know is that today was the day and the 10yr auction was the catalyst. The video discusses the takeaways in greater detail. The most important is that the strength of today's auction should not be taken as a guarantee of a swift recovery in rates as much as a suggestion that the recent selling trend should cool off. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Monthly CPI 0.5 v 0.5 f'cast, 0.9 prev Core Annual CPI 4.3 vs 4.3 f'cast, 4.5 prev Market Movement Recap 08:53 AM Bonds slightly…(read more)