MBS RECAP: Late Day Risk Rally Leaves Bond Markets In The Red
Posted To: MBS Commentary
MBS Live : MBS Afternoon Market Summary MBS prices fell fairly steadily into and after the 2pm hour, eventually bottoming out just below current levels at 104-08. The ostensible culprit is the risk rally into the domestic stock market cash close. The whole affair occurred at the same time as a rebound in the Euro and was also traced by German Bunds. With no clear headline motivations and calendar-roll trading also a known motivator for the day, we could also be seeing tradeflow adjustments around the major markets’ closing times (3pm for bonds, 4pm for stocks) as well as a technical rejection of a move below 1.71 earlier today in 10yr yields moving quickly back to the other side of the recently narrowing range, which incidentally, would be very close to exactly where 10yr yields look to be…(read more)
