Good Morning. Dont forget its Tuesday...not Monday (feels like Monday to me)
So far this AM
- Overseas equity markets higher overnight...SHANGHAI, HANG SENG, NIKKEI, TOPIX, KOSPI, DAX, CAC, FTSE
- Dollar weaker, Oil richer, Gold over $1,000
- 2s/5s steeper, 2s/10s steeper, 5s/10s steeper, 2s/30s steeper, 10s/30s steeper...yeh, the yield curve is steeper
- TSY futures higher/flat from Friday, stock futures up
MBS flat/slightly higher...
Recap of Previous Session
- Month-Long Rally that had extended into September finally hits ceiling on NFP day
- Headline payrolls were better than expected... generally perceived to be negative for bond markets
- U/E (unemployment rate) was however higher than expected at 9.7%
- Choppy price action ensued but in relatively low volume. MBS were able to reach near recent highs by mid-day though
- But as the noon hour arrived, characteristic early exits led to characteristic cashing in of earnings before long weekend
- MBS shot down almost half a point, but interestingly enough found their floor at the price level that served as such a prominent ceiling in the 2nd half of August: 100-13
The Day Ahead
- READ MND STORY: Markets Get Back to Work
- Data calendar light....stock lever in effect. Might still be slow, low volume, choppy week
- Welcome back to work traders and money managers, time to put money to work. We are defensive of a back up in rates until stocks offer confirmation of weakness (S&P break below 970).
- $38 billlion 3 yr notes at 1pm
MBS Market Alerts
