MBS RECAP: Positive Week Leaves Bonds on Edge


Posted To: MBS Commentary

5 straight days of lower closing yields in Treasuries Almost 5 straight days of higher closes for MBS In both cases, 90%+ of the gains followed the Fed Bonds weren't the only winners so "the game" remains undecided Individually, there was nothing special about any given day this week for bond markets, except Wednesday's FOMC day. We began the week near the weakest levels since January and proceeded to trade mostly sideways heading into Fed day. On Fed day itself, bonds were weaker in the morning, with MBS prices briefly hitting the lowest levels since January 22nd. Post-Fed, things changed . Easy Fed policy is rally fuel for both stocks and bonds, at least in the short term. We haven't yet gotten to the decision points on longer-term shifts. Will this end up being the…(read more)

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