Price of mortgage-backed securities progressively moved higher as the day wore on yesterday, after all was said and done loses from the prior day were recovered. The improvement in price allowed most lenders to reprice for the better by day’s end. Helping fuel the turnaround was the stock market moving off its highs of the day and benchmark treasury yields moving lower. The 10yr Treasury note closing at a yield of 3.54 after hitting 3.60 earlier in the day. Most of the fluctuations in financial markets appeared to traders setting themselves up for today: the biggest impacting report of the month, the Employment Situation report.
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