MBS Day Ahead: Bonds Still Looking to Confirm Last Week’s Momentum


Posted To: MBS Commentary

Last week introduced the possibility that March's bearish trend was reversing yesterday's weakness failed to confirm that reversal It's still possible, but there's slightly more reason to be cautious now The 8:20am CME pit open was a focal point for yesterday's morning volatility , letting us know that tradeflow considerations were setting the tone. In other words, traders weren't watching news or economic data for market moving guidance at that point in the day. They simply had trades they needed or wanted to make and had been waiting–by choice or necessity–for the CME pit open. The fact that tradeflows were in control was apparent in the divergence between stocks and bonds. Both lost ground simultaneously–something they haven't been too eager to do for most…(read more)

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