MBS MID-DAY: All Votes in Favor of Bond Market Rally

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary First Asia, then Europe, and now the Domestic session… All three have had moderately positive impacts on bond markets leaving Fannie 3.5 MBS up 10 ticks at 103-16 and 10yr yields down nearly 7bps at 1.988. Stocks were already down in the overnight session on weaker Chinese GDP and Spanish debt concerns, but losses accelerated after a weaker-than-expected Consumer Sentiment report showed consumers’ assessment of current conditions stood at the lowest level since December 2011. With bond markets recently at the weaker end of their range there has been “room to run” to some extent, but current gains are already rapidly approaching the week’s best levels. Resistance to further gains could be a problem once we reach those levels, but holding flat at current…(read more)

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