Posted To: MBS CommentaryPerhaps traders were tired? Perhaps they are still on high alert but just haven’t gotten to the week’s more meaningful events yet? Either way, there was effectively no drama for bonds today. This is both good and bad. On a positive note, it was nice to come into the office today and NOT witness yields continuing to rise above the 2.95% ceiling (10yr) that came under pressure last week. On a negative note, it was disconcerting to see yields continue holding so close to that ceiling. In other words, it looks like bonds sold-off as much as they wanted to on Friday, and we’re now waiting for the other shoe to drop . Said shoe could be some combination of Treasury/Corporate supply in the first half of the week or some combination of the ECB announcement and US inflation/Sales data at…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631