MBS MORNING: Moderate Gains On Low Volume
Posted To:MBS Commentary
MBS and Treasuries are both up on the day with the 4.5 gaining 6 ticks to 101-09 and the 10yr up 7 ticks, dropping the yield to 3.455. Supply is light in the mortgage world while demand remains “less light” courtesy of the Fed and servicers adding duration in the persistently low rate environment. But the ongoing caveat of LOW VOLUME remains. New originator supply is struggling to show 500 mil and 10yr contracts only recently crested 350k. Volume is almost too low to read much into this AM's high yields in the 10yr coinciding with yesterday's low yield. Given yesterday's similarly low volume in conjunction with yield curve steepness (among other things), there's a lot riding on this auction. As AQ mentioned earlier, it's the week's first decent look at demand…(read more)
This mortgage update is brought to you by: Matthew Graham – You can read the full article at MBS MORNING: Moderate Gains On Low Volume
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