The MBS market is adding to losses that came yesterday afternoon with the 5.5% coupon down 5/32nds so far.
Yesterday was frustrating for bears and bulls as inflation and "loss" concerns ruled the day. Money left the market in both stocks and bonds partly due to inflation headlines and possibly due to "preparation." It was another light volume day so the fact that MBS dropped almost half a point is not quite as horrible as it might be considering there was limited buying of MBS yesterday..
Unfortunately, if we we were hoping to simply deal with scheduled economic releases today, there is another new boatload of headline data to digest. Here's what's on tap for scheduled reports:
- Personal Income and Outlays - A very important report that speaks to inflation. Just released at 830 AM eastern, and at first glance, the numbers are MBS friendly, though not friendly enough to cause any significant movement in the MBS market yet.
- University of Michigan Consumer Sentiment Survey- Just what it says.. This will be out at 10AM.