MBS trading activity remains sluggish. Unfortunately our guiding light (the yield curve) is not shining too brightly this AM. As the yield on the 10 yr TSY note has risen...
Bids on the FN 4.5 have slowly deteriorated...
...and MBS/TSY yield spreads are wider. Our benchmark is outperforming us as MBS buyers await a clearer indication of things to come....
This weakness is reason enough for us to issue an ALERT TO BE ON "REPRICE FOR WORSE" WATCH....
MBS Market Alerts
