MBS CLOSE: Ugly Day… Any Hope For Tomorrow?
ByPosted To: MBS Commentary
In case you missed it (some of us wish we would have), it was an ugly day. 4.0's were down nearly a full point to 97-18. 4.5s were off 22 ticks to 100-18. Meanwhile, the 10yr tsy lost more than a point to end at a yield of 3.678. All of this occurred against a medium low day of volume that saw stocks push back in line with annual closing highs. But data was at a minimum. The most important events of the year are behind us, and it leaves us to wonder if we're seeing a classically choppy year end trading session or if the huge moves and only marginally lower-than-average volume are indicative of a broader shift in sentiment. Well, not really, but those are the only two contenders and it wouldn't be very interesting to just mention one. All across the board, we were weaker to open…(read more)