MBS Day Ahead: Did The Good Times Already Stop Rolling?
Posted To: MBS Commentary
Yesterday marked "the roll" for 30yr fixed UMBS ( what's this? ), but that's not all that was rolling. The proverbial "good times" began–well, you know… after one of the strongest 10yr Treasury auctions in decades yesterday afternoon. Now on Thursday, we're watching 10yr yields struggle to avoid losing more than 3-4 bps. Did the good times already stop rolling? It's a bit more complicated than that. First off, it's important to note that the strength of yesterday's auction had a lot to do with a few uncommon factors. The first is the fact that auction day happened to fall at the end of 5 straight days of heavy selling–the kind of 5-day streak that we only see a few times a year. As we discussed earlier this week, these sorts of streaks typically…(read more)