TSYs and Mortgages have both remained range bound all afternoon as the market awaits mid-weekTSY auctions.
Beyond early morning commotion, volume in both TSY and MBS markets has been below normal...making today a bit boring. It should however be noted that, as TSYs failed to make any positive progress, "rate sheet influential" MBS coupons (4.5s and 5.0s) improved a few ticks. This is thanks to the consistent bid side support of the Federal Reserve coupled with some supportive nibbling/bargain buying from banks and overseas accounts.
Glass Half Full Perspective: MBS outperformed TSY today...yield spreads were slightly tighter. APATHETIC YAY....
2s vs. 5s: 155bps
2s vs. 10s: 269bps
5s vs. 10s: 114bps
MBS Market Alerts
