Moderate Morning MBS Losses Turn Into Healthy Afternoon Gains

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Posted To: MBS Commentary

Another data-less day has passed and we've seen another day of chopatility led by technical inflection levels surrounding the Fed's open market operations. Yesterday it was "morning session good, PM session bad," and today it was "morning session bad, PM session good". MBS and Treasuries alike languished until 2pm. But the downtick was fairly measured and well contained by technical support, although things did get choppier as the afternoon pre-POMO (2nd operation of the day) trade coincided with lighter and lighter volumes. Here is a recap of 5pm marks... For mortgages, the end result was a Fannie 4.0 that gained half a point trough to peak and closed at the highs, better than mid-range versus yesterday's prices. Those FN 4.0s sure do love a bull flattener into decling vol! Treasuries did...(read more)

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Source: www.mortgagenewsdaily.com

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