MBS CLOSE: 4.5 At Par Signals Profit-Takers
December 30, 2009 – 1:56 pmPosted To: MBS Commentary
MBS opened and traded the AM at their best levels of the day with Par on the 4.5 even couched in a supportive guise. But as the noon hour approached, it was back to yesterday's closing levels for MBS as profit taking came, saw, and kicked a moderate amount of posterior right up until the auction. During the same time, Tsy's opened with similar strength, and backed up even more than MBS relative to yesterday's close of 3.81, but at just over 3.82, not by much. The pre-auction selling was not such an unfamiliar circumstance, but the lack of volatility thereafter was. Bonds rallied immediately followed the auction and never again came close to those weak points of the day. In fact, they put in level after miniature level of support as MBS pushed back to close at 99-30 with tsy's...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.