Mortgage bond prices opened near unchanged this morning holding the gains from yesterday afternoon.
This
morning represents a forward drop for MBS traders. The front month for
delivery has rolled to August. This is a technical aspect of the bond
market and has no real impact on daily rates. Secondary managers have
been pricing into the August coupon for some time. What is most
noticeable is the drop in bond prices as forward months fall
approximately 8/32s to 10/32s.
Rates continue to find support
from weakness abroad but Germany had an auction with a low yield
overnight. Overall the news out of the euro zone is tame so far this
morning.
We have a 10Y auction this afternoon along with the Fed minutes. Stock futures are slightly positive.
No comments:
Post a Comment