|This email was sent to you by:|
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Some Post-POMO Weakness, But Range Holding For Now
Posted to: Micro News
Thursday, December 6, 2012 12:14 PM
Like yesterday, Treasuries hit their best levels of the day just after the completion of the Fed's Twist buying operation at 11:00am. But unlike yesterday, there isn't a debt-ceiling tape-bomb circulating to incite a chaotic "risk-on" rally for stocks and to create additional selling pressure for bonds. There's still some selling pressure, but not nearly as developed as yesterday's version.
MBS, for their part, are looking a bit detached from the goings-on in related markets. Earlier this morning, we noted resistance centered on 105-15 and support at 105-11. Since then, the resistance proved to be relatively firm with no breaks over 105-15, but the post-11am weakness has also met good support at the 105-11 level.
In that regard, not much has changed from the morning's assessment of 105-11 as a good "heads-up" level that, if crossed, would be the first warning that risk is increasing, though not an outright "trigger" for negative reprice risk.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.