MBS RECAP: Bonds Think it Over After NFP, Then Finally Decide to Rally


Posted To: MBS Commentary

This morning's trading–both before and after NFP came out–basically acted as additional time for debate . Both MBS and Treasuries bounced quickly, but symmetrically around yesterday's closing levels before finally choosing a direction. Actually, the direction may have been chosen for them to some extent, as it was the stock market that made the first move. To bonds' credit, they didn't lose their cool in the first hour and a half of trading as stocks moved higher. Once it became clear that equities were heading down and out, bonds finally followed. 10yr yields hit their lowest closing levels since late August. MBS haven't bounced back quite as much relative to late-summertime levels, but they're getting close. NFP itself didn't seem to matter much, although I suspect…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Show Buttons
Hide Buttons