Feb
MBS MID-DAY: Leveling Off After Moderate Morning Weakness
Posted To: MBS Commentary
MBS Live : MBS Morning Market Summary Much like yesterday, today has been uncharacteristically slow in the context of recent volatility. Unfortunately, that slowness has served as the playing field upon which MBS prices have steadily weakened, coinciding with rising Treasury yields and stock prices for a quintessential, if tepid, “risk-on” move. It’s part of a series of back and forth swings (note our excessive references this week to the concept of “risk-on vs ‘risk-off”) that combine to paint a picture of narrowing trading ranges heading into tomorrow morning’s ECB Announcement. There’s no big news expected from the announcement, but markets seem to be getting into ‘ready position’ just in case. None of this morning’s weakness in MBS or Treasuries takes them outside these triangular, consolidating…(read more)