MBS Back Into Positive Territory. Staying Strong vs Treasuries
MBS aren't sticking it to Treasuries quite as badly as they had been this morning, but at the very least, they're not underperforming. Indeed, MBS are in positive territory on the day while 10yr Treasuries aren't quite there yet.
There's really not much to say about today's market movement. Once again, a range boundary was tested, and once again, rates remain in the range. Today's lows in 10yr yields are a bit of a dark horse in that race though... They line up with yesterday afternoon's lows and potentially could act as resistance if they're not broken on this rally into the afternoon (2.619-ish).
We'll cross that bridge if we come to it in terms of negative implications on the MBS Rally. For now, 3.5s are at their best levels of the day, and Treasuries don't currently look like they're eager to bounce hard at 2.619.