MBS Day Ahead: Treasuries, MBS Back on Same Page After 2 Weeks On Different Paths

Bear with me while I'm forced to crank up the power on my analytical microscope in order to find anything interesting to say about one of the least volatile bond market trends we've ever seen. None of what we're about to discuss would make the cut in terms of relevance at almost any other time in bond market history. That said, it's still potentially interesting or even reassuring for those of you who've noticed MBS seeming to struggle a bit versus Treasuries over the past two weeks. Specifically, MBS prices generally saw lower lows and lower highs in those 2 weeks whereas Treasury YIELDS did the same thing (meaning they were IMPROVING modestly while MBS were losing ground). As of today, however, the curse has been reversed. Steady gains in MBS have each 3-month chart looking...(read more)

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