Bond markets are heading toward the end of the session very close to unchanged levels. This is a small accomplishment considering they began the day in weaker territory. Major sell-offs in global stock markets helped bonds find their footing, with Germany leading the charge for US Treasuries in the morning hours. In short, both in the US and Europe, stocks sold and bonds gained.
Once the European session was over, US markets ebbed back in the other direction. This brought MBS back toward unchanged levels at 103-27 after being as high as 104-31 earlier. Most of the reprices seen were improvements heading into the highs (and just after them), but there were a few negative reprices later in the afternoon despite MBS holding quite steady at +0-01 day-over-day.
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