MBS RECAP: Minimal Damage for MBS Despite More Pronounced Treasury Weakness


MBS were generally flat today while Treasuries were slightly skewed toward higher yields.  There’s really not much more to observe about today’s movement.  There was no significant economic data though some media outlets and even market-watchers make a case for the JOLTS data moving markets (refers to the “Job Openings and Labor Turnover Survey” which provides broad context for the employment environment in June, and it’s not a short-term market mover).

Overnight trading had only a mild effect on Treasuries.  In fact, US bond markets marched to their own beat for the most part as Treasuries underperformed EU bond markets.  Geopolitical headlines did little or nothing to change the tone.  It simply looks like US markets are expressing some caution ahead of the first significant day of the week tomorrow with Retail Sales and the 10yr Note Auction.

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