Posted To: MBS Commentary
Huge Jobs Report, Logical Weakness, and a Nice Bounce, But… Bonds did quite well today considering Powell's endorsement of higher rates (yesterday) combined with this morning's significantly stronger jobs report. Most of the push back was seen in MBS, however, and even then, closing levels are only really worthy of enthusiasm when compared to the past 26 hours. The rising rate narrative remains intact until further notice. Could next week's Treasury auction cycle finally be the thing that helps us identify a tactical opportunity for rates to recover? Sure! But betting on such things ahead of time has been costly. Wait for confirmation. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:06 AM Bonds were modestly weaker in Asia, bounced back modestly in…(read more)