The AM So Far...
- Risk averse trade taking over
- Overnight: Stocks Hurting, Dollar stronger, TSY futures Improved, Oil prices tick lower
- 10yr opening up at 3.5, which is a 19 tick improvement. MBS up 12 to 100-08
- First tiny tiny leg of this week's "Journey To A Stock Correction" is going well.
- In line with friday's highs
Recap of Previous Session
- Sparkle and Fade
- MBS Rallied big early on data and faded into a friday afternoon.
- Consumer sentiment weaker... CPI showed no inflation
- Industrial production was better than expected, but no one cared.
In The Time It Takes To Type... (NEW!)
Nominal retracing after an exuberant overnight bond bid.
Plain and Simple: There are two reasons we might expect some sort of regression to a mild rally. First, the domestic market tends to march to the beat of it's own drum when we wake up. So even if Asia and Europe ran up bonds and even if early trades are forced into those higher levels, domestic sentiment usually serves to moderate the more drastic overnight changes, at least in the early hours. Also, we're looking at some serious inertia levels in both Tsy's and MBS at 3.5 yield and near PAR respectively. That said, if the rally is on, it's on... Let's wait and see!
MBS Market Alerts
