MBS RECAP: Bonds Rally After Weaker Start

Posted To: MBS Commentary

Much like yesterday’s session, today saw bond markets begin the day in slightly weaker territory only to rally into slightly stronger territory by the end of the session. There were no singular, overt market movers, but rather a slow, steady, linear trend throughout the day. ISM Manufacturing did come in slightly weaker than expected, and I would imagine a few old school market watchers would connect the dots between weaker economic data and a bond rally. I’d normally push back on that old school approach with both hands, but in today’s case, we actually did end up seeing a general uptick in volume accompanying a mild leg of the rally shortly after 10am (when the data came out). All that having been said, bonds were still weaker on the day heading into the noon hour. It wasn’t…(read more)

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