MBS Day Ahead: Limited Econ Data Leaves Focus on Tax Reform Headlines

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Posted To: MBS Commentary

There isn't much by way of relevant data on the economic calendar this week. In fact, there are no reports that would ever be considered "top-tier" in terms of market movement potential. The less important data comes at at a slow pace to boot, with effectively no potential market movers until the very end of the week. The Treasury auction cycle provides a slightly better chance of inspiring some momentum, but as always, these can be hit and miss. Of the two alternating cycles of Treasury issuance, this "3, 10, 30" cycle tends to be more relevant for our purposes as it speaks more to the longer end of the yield curve. Longer-term rates do more to dictate MBS momentum than the shorter average duration of the "2, 5, 7" auction cycle. But all of the above is small…(read more)

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