MBS RECAP: Exclamation Point on 3-Week Rally

Posted To: MBS Commentary

Not only have bonds confirmed the recent move back into “the range,” they’ve kept going strong 10yr yields hit 1.72, down 4.2bps, Fannie 3.0s up to 102-26 (+5 ticks) Rates are really close to 3-year lows Data itself didn’t matter directly, but GDP revisions did, almost as much as Bunds Today’s gains were primarily a story of German Bunds, which is the benchmark of the European bond market. Bunds rallied for a variety of reasons, not the least of which being a glut of almost universally weaker economic data . This combined with several headlines (even Greece made a guest appearance as a market mover) to bring Bund yields very close to their all-time lows (.082 vs .049… way within striking distance). The pervasive global bond market rally was reinvigorated 3 weeks ago…(read more)

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