MBS RECAP: After One Day of Rest, Bonds Back to Business (of Selling)


Posted To: MBS Commentary

Bonds got back to their weaker ways after a very brief, shallow correction last Friday. We had increasingly expected that "green day," and were under no illusions about it starting a new trend. If we strike Friday's trading from the record, today's weakness would only have constituted a moderate extension of the same old trend that's been intact for 12 days. It's really just about that simple. If there's a complicating factor today, it was a big slate of corporate debt issuance, led by an unexpected deal from Verizon. If you're not sure why that should matter for mortgage rates or just need a refresher, you can get caught up with the primer HERE . Bonds sold early and often, with a noticeable acceleration in the weakness following the European close and again…(read more)

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