MBS MID-DAY: Clawing At All-Time Highs While Treasuries Have It Easy
Posted To: MBS Commentary
MBS Live : MBS Morning Market Summary MBS and, to a greater extent, Treasuries have been off to the races this morning where the latter is currently trading into the 1.63′s–record territory within the scope of modern economic history, and largely driven by the record low yields in EU Benchmark German Bunds hitting record lows as well (currently under 1.27%). This has created a clearly defined “triangle breakout” for 10yr US Treasuries on the chart of the converging trends that we’ve presented on a few occasions: MBS, on the other hand, are just barely clawing their way back to previous all-time highs. Considering that they’re closer to delivery now than they were when they previously hit all-time highs, the fact that this looks like a challenge for them is very telling: MBS Pricing Snapshot…(read more)
