MBS RECAP: Bonds Holding Week's Big Gains For Now

Posted To: MBS Commentary

It could have been a lot worse! That’s a great theme for today’s bond market action. Yesterday was the kind of rally where traders buy bonds first and ask questions later. Those questions are typically asked in the form of bond selling on the subsequent day (today). As such, we were well within our rights to expect a pullback today, and we barely got one! 10yr yields managed to end the day only half a bp higher at 2.228. That’s impressive given that the stock market was able to retrace quite a bit more of its move from yesterday and that there were several unfriendly headlines throughout the day. On the other hand , 10yr yields managed to move up to 2.228 after being as low as 2.18 overnight, but I’d argue that the 2.18% had more to do with overseas markets taking their turn…(read more)

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