MBS RECAP: A Mere Formality


As was the goal of most anyone involved in trading bonds, today was completely inconsequential.  Recapping the action is a mere formality (indeed, for a more interesting read, check out the Day Ahead).   There were no significant economic reports and not even any remotely interesting headlines.  

After moving back to ‘unchanged’ levels from weaker opening levels, bonds lost ground heading into the European close at noon.  This would have typically been enough for some lenders to reprice, but most leave a big enough cushion in Friday-after-Thanksgiving’s rate sheets to avoid serious reprice risk.  

The only interesting development was the all-time high in stocks, and there’s no telling if the thousands of other traders returning to work next week will agree with the 7 that were unlucky enough to be left in the office today.

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