MBS RECAP: More Gains; More Potential Volatility Ahead


Posted To: MBS Commentary

The bond market had another solid day today, although that wasn't necessarily destined to be the case from the start. Yields were slightly higher in the first half of the overnight session and didn't begin to recover until equities futures moved lower at the start of European trading hours. Bonds actually pushed back in a weaker direction at the 8:20am CME open, 5 minutes after an equivocal reaction to an equivocal ADP Employment report, but the losses were short-lived. As stocks continued to drop, bonds increasingly stepped into the role of "safe-haven" and happily soaked up some of the cash that was seeking the sidelines ahead of 2 more big days of econ data. As is typically the case for a flight-to-safety bond rally, Treasuries fared better than MBS. Regardless of the motivation…(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