MBS RECAP: Econ Data Greases Skids For Solid Bond Gains


Posted To: MBS Commentary

Bond markets began the day in roughly unchanged territory as they geared up to digest any curveballs from the payrolls data. NFP came in weaker than expected, missing by 33k. Revisions to the previous month, however, were +35k, making the headline a bit less potent. Elsewhere in the data, wages remained tepid due to a negative revision to last month's average hourly earnings. All of the above was apparently enough ("absence of negative news" perhaps?) for bonds to rally moderately. Following the weaker ISM data at 10am, bonds were willing to rally a bit more, and that was about all there was to say about that! 10yr yields rallied 3.5bps in total, but notably, didn't break below the 2.95% technical level. Fannie 4.0 MBS added just over an eighth of a point, with only a few…(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