Tuesday 3/17...Happy St. Patricks Day aka My Anniversary
Thought i would give everyone a quick update. Even though treasuries have really sold off moving from a low yield of 2.90 up to the current yield of 3.00, mortgage backed securities are unchanged from this morning. Like i said earlier, it appears that mbs have really detached from Treasuries over the last few days. Also, the Dow is up over 120 points so it appears that investors are selling treasuries and not mbs to fund the rally.
All in all, even though we are basically where we were this morning, yesterday and Friday with the price of mbs, we are having a pretty positive day. With a pretty decent dow rally and a treasury sell off, we are holding our own. This is much like playing black jack. You can win in blackjack, lose in blackjack or push meaning tie the bank. 2 out of 3 are positive outcomes and today appears to be a push day, not gaining is better than losing or selling off in this case.