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MBS Day Ahead: Lots of Data, But All Eyes on Brexit

Posted To: MBS Commentary

Yesterday saw a swath of Brexit headlines spark unavoidable bond market weakness just as a weaker reading in the important Retail Sales report suggested a rally. Offsetting penalties, back to the line of scrimmage! Bonds ultimately ended green on the day, but that was largely made possible by the heavy losses from Tuesday's session (brexit-driven as well). Heading into today, Brexit continued to hog the spotlight as far as global markets and US Treasuries were concerned. News of a NEW and potentially viable deal hit hard overnight with GBP (British Pounds Sterling) and EU bond yields surging higher. Treasury yields were pulled along for the ride in heavy volume. 10yr Treasuries hit their highest yields in just shy of a month (Sept 19th was higher, but just barely). Doubts began to emerge...(read more)