MBS RECAP: Uneventful Gains and a Discussion About “Escape Velocity”


Posted To: MBS Commentary

It was almost a wholly uneventful day for bond markets. If not for the fact that trading levels improved day-over-day, there wouldn't be much to talk about apart from technicals. For more on the relevant technicals , check out the Day Ahead . Away from bond markets, the day was made interesting by the news that FHA MIP premiums are dropping (by 25bps for most). Here's the full story with a table of the various changes. But back to technicals… The breakout of the long-term bull market in bonds (since 1981) is a hot topic these days. To be sure, this definitely won't be the last time we talk about it. Today's opportunity comes from an article in the news stream from Bloomberg that mentions the "escape velocity" level that will let us know bonds have sold-off enough…(read more)

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