MBS RECAP: Bonds Keep Reasonable Amount of Brexit Mega-Rally

Posted To: MBS Commentary

10yr yields were as low as 1.406 overnight, but moved up to the mid 1.5’s by the close MBS were up nearly 7/8ths of a point at their best, but will have to settle for “only” about 5/8ths of a point Trading was driven by Brexit, exclusively. Data was ignored Too soon to tell how this one will play out, but it’s more encouraging than the last mega rally While we did get some economic data this morning that has historically been important to markets, the only order of the day was to trade in response to Brexit and then to trade in response to those trades. Although we lost quite a bit of ground from the best levels of the overnight session, bond markets nonetheless ended the day in much stronger territory , marking their best closing levels in more than 3 years. The last time…(read more)

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