Heading into the last few hours of the day, MBS are only off 1 tick from yesterday's latest levels, but unlikely to make it back to yesterday's highs. That's OK!
We're still left with the week's most important victory which is confirmation that the selling-spree from late May is over. Of course there's no way to know if the next trend will be weaker as well, but at the very least, putting an end to one negative trend is preferable to remaining inside that negative trend. It at least provides a chance to do something else.
This confirmation comes courtesy of yesterday's strength and today's absence of significant weakness. That wasn't as clear this morning as bond markets got off to a rocky start, but at the day progressed, yields dropped, MBS inched toward unchanged territory, and most lenders released positive reprices.
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