MBS Day Ahead: Markets Contemplate Fate Amid Dearth of Domestic Data


Posted To: MBS Commentary

Bond markets threatened to bounce weaker yesterday concern was that new month tradeflows were just the start of more selling hope was that it was just profit-taking on month-end bets Technicals now looking good again hoping technicals still look good at close; no econ data on tap Bond markets had a challenging day to kick off the new month yesterday. That was a bit disconcerting considering the possibility that the weakness was driven by a shift in trading momentum that is sometimes seen at the beginning of a new month (when the previous month ends with noticeable momentum in the opposite direction). Our hope had been that yesterday's weakness was merely a 'cleansing' of the opportunistic trading that also can accompany month-end momentum. In other words, some traders MUST make…(read more)

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