MBS RECAP: What Econ Data? More Cyprus Headlines Please!


Not quite as fast as it had begun, the recent risk-on move that followed headlines suggesting an orderly break-up of Cyprus Popular Bank (also known as “Marfin”) is now undone by conflicting headlines saying that the Cypriot Central Bank is denying those reports. Nonetheless, crowds are growing, both in size and distemper (see ZH’s coverage of Cyp-Riots), and bond markets are bouncing back in friendlier directions.

All of the above–as dramatic as it might sound–is not much reaching MBS Markets, where Fannie 3.0s have merely swing a tick or two in either direction. 10yr yields have ratcheted steadily lower to test 1.93 at the moment and equities are off their earlier highs.

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