MBS RECAP: Bonds Lose Ground to End Week Nearly Unchanged

Posted To: MBS Commentary

10yr yields ended the week right where they began it (1.90%) Same can’t be said of MBS, Fannie 3.0s lost ground on the week Durable Goods data helped early, but stock/oil bounce dominated Bonds sold off into afternoon and most lenders repriced Bond markets ended the day in just slightly weaker territory than it began. The overnight session was good, with Treasuries holding ground and rallying in concert with weakness in stocks and oil. Durable Goods data added to the rally. It wasn’t that the headline was too troubling (indeed, -2.8 vs -2.9 forecast would seem to argue against a further rally). Instead, it was the ‘nondefense, excluding aircraft’ component (aka “CapEx”) that missed estimates handily and helped the bond rally continue. Meanwhile, stocks and oil continued…(read more)

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