MBS CLOSE: Slow At First, Gains Accelerate Into Close
December 29, 2009 – 1:32 pmPosted To: MBS Commentary
It took a while for markets to decide just what to do after the 5 year auction results at 1pm. Whether there was any actual level of "indecision" present is unknown and perhaps unimportant. More likely, what we see in today's charts is the effect of a "short covering opportunity" being exercised amidst the generally duration-positive month end trading sessions. Talk about "duration-positive!" Whoo... 2s v 10s approaching 260's again is pretty much unheard of these days. Sure, from a historical standpoint, it's about as steep as the Matterhorn looks on a 5-year-old's first trip to Disney, but in the context of the recent 280's we've seen, to close out the day at 271.4 is quite the flattener. But, of course, we'd be neglecting our own...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.