MBS RECAP: Bonds Quietly Confirming Positive Momentum

Posted To: MBS Commentary

Very little movement overnight across multiple asset classes ADP helped bonds slightly out of the gate Tradeflows and late-morning economic data made a dent, but bonds recovered Modest gains keep technical momentum intact Today was the right kind of quiet . Bonds only needed to stay in roughly unchanged territory in order to add confirmation to several technical indicators that recently turned positive. The 2 tick gain in MBS and 2bp gain in Treasury yields fits the bill. The overnight session was exceptionally calm and resulted in bond markets beginning the day right about where they left off yesterday. ADP employment data came out weaker than expected and helped bonds make decent gains, but they soon found resistance and moved in the other direction heading into the stock market open. Stronger…(read more)

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