MBS RECAP: Huge Day For Bonds, For Better and Worse
Posted To: MBS Commentary
Without discussing what tomorrow may bring for bond markets, we can safely say that today was big. Both in terms volumes and outright trading levels, we haven't seen a bigger combo since the big stock sell-off in early October, and that came near the top of the rate range. Today was arguably much more significant because it occurred as rates were already pushing multi-month lows. Today was big in a good way in the sense that yields made it all the way down to 2.826%. But the same level raises risks of a technical bounce. After all, 2.82% is the resistance level we've been watching for the past 2 sessions and we bounced fairly hard there today (10's ended at 2.89%). At the risk of stating the obvious, a lot could be riding on tomorrow's jobs report. We have NFP built up to pass...(
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