MBS RECAP: Uneventful Green Days Are Starting to Add Up


Posted To: MBS Commentary

Much like Friday, today was uneventful and moderately positive for bond markets. At some point, we have to consider the combined effects of these sorts of days. Individually, they're " nice ," but not too terribly special. When they come in 2's and 3's, they add up to a potential shift in momentum. Last week's bounce from 2.62% to 2.49% brought us to the cusp of discussing such a momentum shift. Up to that point, we could have simply been dealing with a " correction " to the market's Fed meeting preparation. In other words, perhaps yields just got a bit too high in expectation of a faster Fed rate hike timeline and simply had to fall a bit before deciding where to go from there. Moving lower from last week's levels means we've found momentum that…(read more)

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