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MBS RECAP: Closer Look at Stocks vs Rates

Posted To: MBS Commentary

Bonds Pull Back, But It's Still a Waiting Game Despite some modest weakness to begin the day, bonds remain smack dab in the center of their recent range. We've officially begun the waiting game. Econ Data / Events 11:30-11:50 AM (ET) - Fed 30yr UMBS Buying Market Movement Recap 08:06 AM Bond yields and stock prices were inconsequentially higher overnight and remained very flat throughout Asian and European sessions. MBS starting the day 2 ticks (.06) weaker. 10yr yields up 1.3bps at .653. 10:15 AM Weakness accelerated into the 10am hour, roughly following a stock surge. Bonds seem to be finding support for now though. 10yr yields up 2.3bps at .663 and UMBS 2.0 down an eighth on the day. 01:12 PM Solid defensive stand continues for the bond market after strong 10yr auction. MBS at highs...(read more)