MBS CLOSE: Stunning Display Of Courage Under Fire

Posted To: MBS Commentary

"Little Engine That Could" status certainly has to go to MBS this week. Like the rest of the fixed income market, after a largely positive 2 weeks, MBS came under heavy fire today with the better than expected NFP print. When that happens, bonds of all shapes and sizes head south in a hurry, but to a much greater extent than treasuries, MBS fought back hard. What does that mean? Take a look at how MBS are definitely rallying from 1030am onward and even return to yesterday's range, whereas treasuries just seem to fizzle sideways, never coming close to even the highest yields from 3/4.... As you can see, MBS appeared to almost be playing the same sort of ball they were for the past two days, but treasuries will certainly be opening their locker to find a one way ticket back to the...(read more)

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