Posted To: MBS Commentary
MBS ended 1 tick lower, but apart from yesterday, it tied the best closing levels in more than a year 10yr yields ended at 1.682, 2.2bps lower European yields hit new all-time lows Overseas accounts helped early and bonds faded from there No major impact from 30yr auction Right out of the gate, Japanese accounts were buying Treasuries this morning, leading 10yr yields under 1.70 to start the session. European trading didn’t add much to that momentum at first, but by the European close, German Bund yields were hitting new all-time lows and US 10yr yields were bottoming out at 1.659 . Once Europe was done for the day, we were left without the same feeding frenzy mentality in bond markets. The last of the ‘feeding’ took place at the 30yr bond auction at 1pm. It was enough to create…(read more )