Posted To: MBS CommentaryToday brought rather pervasive pressure on longer-term rates and mortgages. It wasn’t a significant amount of selling, but it was fairly steady throughout the day–ultimately bringing us back into the red after starting the day in the green. Credit Europe for the green start. To a smaller extent, stock losses may have played a role. As domestic traders got started for the day, everything reversed course . Stocks gained. Bonds lost. Economic data was either uneventful or overlooked. The only noticeable theme in bond markets was a “steepening” bias. In other words, traders were willing to sell 10yr Treasuries much more readily than 2yr Treasuries. Indeed, 2s stayed green (and never really sold off) while 10s were up nearly 1bp by the close after beginning the day nearly 3bps lower…(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