Posted To: MBS CommentaryInteresting day today… It began with a decent overnight rally, mostly led by European bond markets. The first big speed-bump came at 8:30am with the Producer Price Index coming in much hotter than expected. Normally, PPI isn’t much of a market mover except in the case of BIG beats/misses. This one fit the bill. Bonds sold-off initially . That much was to be expected, but there would they end the day? The possibilities were endless considering yields were already fairly close to long-term highs. Instead, the 9:30am NYSE open brought a healthy dose of bond buying and a moderate amount of stock selling. European trading continued to play a role until noon when bonds went completely silent ahead of the 3-day Veterans Day Weekend, but not before 10yr yields fell more than 5bps and Fannie 4…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.