MBS RECAP: Bonds Lose Ground After Opening Stronger

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Posted To: MBS Commentary

Treasuries gain overnight on flight-to-safety surrounding Brussels terror attacks rates struggled to break overnight lows in morning trading After European close, bond markets quickly sold-off, with 10's breaking above 1.92% Chicago Fed's Evans' comments may have contributed Fannie 3.0s end down 5 ticks on the day, but 9 ticks off highs In the grand scheme of things, today's sell-off wasn't that big . 10yr yields only closed 2.7bps higher than yesterday and Fannie 3.0s were only down 5 ticks. We see this sort of weakness all the time, but today managed to make it seem more threatening than the numbers suggest. First off, there's the simple fact that bonds were in stronger shape to start the day. True, the outright losses weren't too severe compared to yesterday's…(read more)

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