MBS RECAP: Technically Stronger, But…

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Posted To: MBS Commentary

Bonds were technically stronger today. There is green on the screen right now for everything but 2yr Treasuries. It's not huge, but at least it's in the right direction. 10's ended the day down nearly 2bps and Fannie 3.5 MBS were up an eighth of a point. There is, however, a catch. It quickly becomes apparent if you happen to look at a 5-day chart of MBS and Treasuries as opposed to a 2-day chart. Point being: today was better than yesterday, but not enough to erase yesterday's damage. Bonds basically leveled-off right in the middle of the weaker half of yesterday's trading range. Not only that, but 10yr yields broke back above the 2.795 technical ceiling. If they hold over 2.795 on Monday, it will be the first time we've had back to back closes in the 2.8+ territory…(read more)

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