MBS Day Ahead: How We Guard Our Newfound Gains


Posted To: MBS Commentary

We've had an impressive winning streak recently and have acquired gains worthy of a watchful, protective eye. Will this be a durable rally or a fleeting victory? That question can't be answered without seeing how economic data and events unfold in the coming weeks. Perhaps even more important will be the tenor of the Fed Announcement next week. One thing I can tell you to expect is at least one day of correction–one red day that pushes back against all the recent positivity. Whether or not that day brings friends is another matter, and a much more significant question than whether or not we'll simply see one red day. In other words, the red day is just something that's always going to happen when bonds string together this sort of winning streak. We can watch various technical…(read more)

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