Posted To: MBS CommentaryThis week continued in the fine tradition of of ultra-light summertime volume and liquidity, but today’s contribution was a bit more worthwhile than the previous 2 entries. Today, at least, had the 10yr Treasury auction–the heretofore most important event of the week for bond markets. This was the biggest 10yr auction in history–not in terms of importance, but in terms of the outright amount being auctioned. How would markets digest this glut of issuance on an illiquid summer trading week that was already seeing a bigger-than-expected surge in corporate bond issuance? As fate would have it, markets coped pretty darn well. There was no meaningful sell-off ahead of the auction, and the stats were definitely on the strong side. Despite that, we didn’t have any meaningful relief rally…(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