|This email was sent to you by:|
Tonya W. Kenon |
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
MBS, Treasuries Turn Green As Domestic Trading Picks up
Posted to: Micro News
Friday, August 23, 2013 9:09 AM
The overnight session was fairly uneventful, even if slightly weaker for Treasuries. Most of the night saw a narrow range between 2.9 and 2.883 with yields moving quickly higher to 2.92 into domestic hours.
That weakness was met with good support thanks to a one-two-(and maybe three) punch from buyers at the CME Open and comments from Fed's Bullard that the Fed doesn't need to be in a hurry to taper in Sept. The third possible punch is simply the supportive buying that kept yields in check even before the two more salient factors.
In other words, yields had already topped out at 7:40am, but were heading sideways and possibly back to highs if not for Bullard and CME buying.
MBS hit the 8am mark in weaker territory vs yesterday and have traced the rally in Treasuries so far. Fannie 4.0s are now up 4 ticks on the day at 102-10. Both Treasuries and MBS are hitting resistance here (2.88 is the level for 10's current bounce). The only scheduled data is New Home Sales at 10am.
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.