MBS RECAP: 10/11/2011


Quite a supportive day for MBS…. Down only 2-3 ticks at the moment as opposed to 10yr notes down 24 ticks in price (5 yr notes now 9 ticks even).

Once again, tomorrow doesn’t hold any big ticket items in terms of morning economic data, but the afternoon is much more robust with both a 10yr Treasury Auction at 1pm and FOMC minutes from the 9/20-9/21 announcement at 2pm. Fed-Speak is interspersed with Fisher at 1:20pm, Plosser at 1:30pm, and Pianalto at 2:15pm.

Since there’s no econ data forecasts to discuss for tomorrow, the following link looks at the recent breakout of what has been an incredibly long-lived and well-behaved trend channel in 10yr yields, as well as the potential effects on MBS, and counterpoints potentially being offered by stocks. Lots of charts of the changes. Leave a comment and let us know what you think of the markets and what you’re doing with your pipelines.

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