MBS RECAP: Week Ends Roughly Where it Began, with Bonds Drifting

Posted To: MBS Commentary

For all the sturm and drang seen in the middle of the week, trading levels somehow managed to hit today’s 3pm close almost perfectly in line with Monday morning’s levels. As expected, Monday and Friday were relative non-events, given that neither contained any interesting data or events on the calendar. This week’s drama was primarily reserved for Tuesday and Wednesday. The biggest event of the week for bonds was arguably the release of Yellen’s prepared congressional testimony at 10am on Tuesday morning. Markets were looking for some read–ANY read–on the Fed’s most timely thoughts on rate hikes. When the first few newswires specifically mentioned the need to hike sooner vs later, it was off to the races for bond yields. Wednesday saw the weakness continue. At issue were…(read more)

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