MBS RECAP: From Bottom to Top of 2017 Range in One Fell Swoop

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Posted To: MBS Commentary

After flirting with a break of the lower end of 2017's sideways range yesterday, bond traders clearly decided " now's not the time. " There's precious little to hang one's hat on when it comes to justifying overnight weakness any other way. That wasn't too big a deal as it left 10yr yields to start the domestic session around 2.36+. Despite a modest amount of weakness after this morning's first round of economic data, yields continued to hold WELL within the recent range–never even breaking into the 2.38's. It wasn't until the afternoon hours that bonds began to slide in a slightly more disconcerting way. EVEN THEN, we were still able to say the range remained and that traders were likely just making some defensive bets ahead of Yellen's 3pm speech…(read more)

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