MBS RECAP: Best Day of Gains Since Early Feb Stock Sell-Off

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Posted To: MBS Commentary

Early in the month (Feb 5th), bonds had their best day of the year as they soaked up a mere fraction of the cash that was fleeing from equities markets and looking for a safe haven. There was no such rout in stocks today, but bonds managed to put in a rather respectable performance nonetheless. Granted, it was nowhere near the same scale as the Feb 5th rally, but it was the best day of the year apart from that. Early gains came courtesy of an ongoing rally in European bond markets. German Bunds are now back at yields not seen since late January . At that time, US 10yr yields were in the low 2.7s. The domestic session got a boost from NY Fed President Dudley, who not only refuted a just-released white paper labeling the Fed's bond buying as largely ineffective, but who also commented on…(read more)

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