


Posted To: MBS Commentary
In the day just passed, bonds jumped out to an early lead in the overnight session on another incremental installment of trade war brinksmanship. China hiked tariffs on $75 bln of US imports and Trump fired back with a 5% bump to tariffs on $300 bln in Chinese imports. All of the above resulted in 10yr yields running to new multi-year lows at 1.443–notably only a skip and a jump away from all-time lows at 1.321%. Before the domestic session began, Trump said friendlier things about a potential trade deal at the G7 summit. With that, bonds returned to unchanged levels and held mostly sideways from there. Well, Treasuries held mostly sideways. MBS thew a little tantrum and stormed off toward noticeably lower levels in the afternoon. That's a surprise considering the relative stability in…(read more)





