Posted To: MBS Commentary
Here's the damage so far today: – MBS 4.0's down 12 ticks to 98-18 – MBS 4.5's down 8 ticks to 101-09 – 10yr Tsy down 17 ticks in price, up 6.4 bps in yield to 3.544 – Stocks mostly unchanged, still very range-bound And by the time the close rolls around in a few hours, what we will likely have seen is a trading week that set up at the outer limits of a long term range, got extremely volatile amidst key data, and returned to a status quo at those outer limits by week's end. In the charts below, the circles around monday's action show how current price levels are very much in line with Monday AM's trading range. For tsy's, the long tracked 3.56 technical range boundary looks to be holding up for now, simply reiterating the same lessons we've been exposed to for…(read more)