MBS RECAP: Bonds Improve, But Is It Enough?


Posted To: MBS Commentary

With two big-ticket events on tap for bond markets today, there was always a chance that they'd go our way and that we'd see some decent gains as a result. Thankfully, that happened. In fact, bonds were already moderately stronger before the first big event–The Consumer Price Index (CPI)–crossed the wires. Following the weaker CPI reading yields moved quickly lower in the highest single-minute volume since February's CPI release. Unfortunately, the resulting rally didn't have enough momentum to break through the 2.95% technical level–a pesky floor for 10yr Treasury yields over the past 3 weeks. Still, the day could still be salvaged if a strong 30yr Bond auction helped yields come around for another attempt. Indeed the auction was on the strong side. This is all the more…(read more)

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