MBS RECAP: Small Gains Leave Broader Losses Intact

Posted To: MBS Commentary

Both yesterday and today have been the sort of days that just haven’t mattered in the slightest for bond markets. Yesterday was spent consolidating the losses seen through the end of last week. Today saw a similar consolidation, despite trading levels finishing slightly stronger compared to yesterday’s close. Before getting too excited about that, consider that today’s 3pm CME closing levels were still higher than Friday’s. We’re left with the impression that trader exhaustion has set in after a busy end to the previous month. Given the timing of Columbus Day this year (this weekend), we might even be waiting until next Tuesday for anything truly interesting to happen. But opportunities for market movement improve with tomorrow’s economic data (ADP employment at 815am…(read more)

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