Wild Ride Leaves MBS Weaker After Super Strong Start

Bonds surged to stronger levels overnight amid a global stock meltdown and flight to safety.  There are several different ways to look at the past several trading days in terms of assigning blame/credit to various motivations.  The reality is almost always some sort of "combo deal" and that's likely the case this time although the most notable x factor may be the "carry trade" involving Japanese Yen and a perfect storm created by last week's calendar events (Fed announcement, Bank of Japan rate hike, weak US econ data including jobs report).  10yr yields hit 3.666 at their lows of the day, but closed just under 3.80.  The biggest source of push-back was the decent ISM data this morning, but there was correctional momentum before and after that as well.