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MBS RECAP: Bonds Making a Case For a New Trend

Posted To: MBS Commentary

Bonds Making a Case For a New Trend We've talked a lot about the linear uptrend in bond yields that began in April. It was defeated by the end of June and bonds began drifting sideways. But now they may be making a case for a new trend toward lower rates. Econ Data / Events 11:30-11:50 AM (ET) - Fed 30yr UMBS Buying Jobless Claims 1.314m vs 1.375m f'cast, 1.427 prev Continued Claims 18.062m vs 18.95m f'cast, 19,290m prev Market Movement Recap 08:16 AM Once again, stocks and bonds made a modest move to start the overnight session and were then extremely flat since then. MBS starting out up 1 tick (0.03) and 10yr yields are down 1.3bps at .653 11:00 AM Bonds are rallying nicely now as the stock market swan dives. 10yr yields down more than 4bps to .62%+ and UMBS 2.0 up an eight, quickly...(read more)