MBS CLOSE: 3 Days Later, Back To The Start

Posted To: MBS Commentary

Narrowing Ranges… That's been a bit of a theme leading up to NFP. The end of December through Tuesday was a pretty good run in which the 4.5 made it from the mid 99's all the way to trade in the mid 100's for more than just a split second. Similarly, tsy's dropped 10bps from around 3.85 to 3.75. But in the last 2 days, we've unwound almost half of those gains. Tsy's are a bit weaker as 3.826, today's closing yield, is right in the thick of the high yields that have been flirting with 3.85 closes. It's all very reminiscent… Range trade ahead of significant data… Narrowing into the event itself… Prepared to break the range should data provide enough of a suggestion. In the above charts, the circles (as always) highlight some of the pokes that prices and…(read more)