MBS RECAP: Just When You Thought it Couldn't Get Worse

Posted To: MBS Commentary

If you were wondering why I was hesitant to get on board with the modest improvements and sideways ground-holding of the past few days, today brings the answer. Rather, it was the fear or possibility of a day like today that should always lead us to question those noncommittal “barely green” days that follow several massive red days with high volume. More often than not, those barely green days serve as a mere consolidation of the initial move. They rarely suggest the return of high-conviction buying demand. There were no significant economic reports today, and although there was some chatter about Fed’s Dudley sparking the sell-off, he didn’t. I know how frustrating it is to consider that there is no new event or data to blame for today’s sell-off, but this move continues…(read more)

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