MBS RECAP: Bonds Win Without Help From Stocks, But There’s a Catch


Posted To: MBS Commentary

Today was "nice" in the highly charged sense of the word where it's meant to convey a certain acceptability and a certain absence of excellence . Bonds didn't weaken in any disconcerting way. They even managed to make some gains–both at the open and heading into the last hour of the day–all without any help from the stock market during domestic hours (stocks improved). All that stuff is "nice," but what are the counterpoints? First off, today's closing levels are only an improvement compared to the worst closing levels in years. 10yr y ields ended up right in line with prevailing "mid 2.8's," which have been intact for 5 straight days . Additionally, there was no attempt to break below 2.82%–roughly the same floor of resistance that blocked our…(read more)

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