MBS RECAP: Bonds Weaker in the AM; Sideways in the PM

The afternoon turned out to be even less interesting than our already-discounted outlook suggested (see the Day ahead, particularly “That leaves the ADP Employment numbers in the morning as the day’s biggest market mover”).  Fannie 4.0s are currently drifting out at 103-06 and 10yr yields just over 2.99, both the same levels hit just after this morning’s ADP data.

The 10yr yr auction and FOMC Minutes weren’t helpful other than to confirm what we already know: rates are under pressure to go higher and the Fed is interested in carefully continuing to reduce asset purchases.  The afternoon was really fairly uninteresting.  By default, that redoubles the emphasis on Friday’s NFP numbers.  Same as it ever was…

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/339158.aspx

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