MBS Day Ahead: Downtrend or Consolidation?

Facebooktwitterlinkedin

Posted To: MBS Commentary

In the day just past, bonds returned from the weekend with an unexpected fervor–at least in terms of outright improvement in yields. Looking beneath the gains, we saw limited volume and no fundamental justification for the move. Rather, it was driven by the very same absence of volume which allowed an imbalance of short positions to be exploited in a short squeeze . The last anticlimactic detail was the fact that MBS noticeably under-performed vs Treasuries. In the day ahead, bonds will continue to sort out their approach to the first week of July (which we expect will be a big jumping-off-point for the next big leg of momentum in an already momentous year). There are several economic reports on tap today, but none of them are in the "big-ticket" category in terms of market movement…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons