Posted To: MBS Commentary
Looking For Silver Linings Despite Falling Sky After a huge day of snowball selling yesterday, bonds started out in weaker territory today. Hugely strong Retail Sales data and sharply higher inflation told rates to keep on rising, but they quickly refused. Several hours later, a decidedly weak 20yr bond auction made the same suggestion (i.e. higher rates), but yields continued holding modest gains. As far as days with intraday yields hitting their highest levels in almost a year are concerned, that's about as much resilience as we could hope for. Tomorrow will be critical in confirming or rejecting today's defiant show of support. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Retail Sales 5.3 vs 1.1 f'cast, -1.0 prev Producer Prices (Inflation, y/y) 2.0 vs 1.1 f'cast,…(read more)
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