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MBS RECAP: Bonds Come Up Short After Another Attempt to Re-Enter Previous Range

October 14, 2020
by admin

For a second straight day, 10yr yields had a solid opportunity to move back into the previous sub-0.72 range only to lose ground as the day progressed. Compared to yesterday, today’s game looked like a much easier win. A covid surge in Europe and weaker stocks helped bonds overnight. Treasuries were ready to capitalize early in the day, but after the market found its footing, bonds sold off for the rest of the day. We had the lead. We blew it. Game over. As expected, MBS ran out of energy to outperform Treasuries and were eventually dragged into weaker territory as well.

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