17 to 9. That's the current score between Treasuries and MBS in terms of day-over-day price gains. Or look at it this way. 10yr yields just had their lowest 3pm close of the year at 2.426 vs 2.438 previously. MBS, on the other hand, are heading out at 102-20 vs a previous high close of 103-08. MBS have been bumping their heads on July's best levels while Treasuries are convincingly through theirs.
The most obvious reason for the underperformance is that the overall bond market rally is driven by geopolitics and European weakness--two things that have a much more direct effect on Treasuries vs MBS. All that to say: yes, there was a pretty substantial rally today, and this is why MBS didn't get to participate as much.
To recap the actual events:
The rally never really let up, largely because of this snowball phenomenon.
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