MBS CLOSE: Bonds End At Highs Of The Day
January 28, 2010 – 2:20 pmPosted To: MBS Commentary
After another decent auction--this time $32 bln in 7yr Notes--bonds showed little inclination toward volatile movement in either direction. Relatively light supply in MBS vs. relatively healthy demand across the stack (but from different sources - Fed at the low end in particular) helped keep prices in check. Nonetheless, prices ground a bit lower after the auction. But as the ink dried on Bernanke's confirmation, both MBS and Tsy's moved to their best levels of the day. Stocks were sold early and often, but rallied in waves to end over 1% down on the day in the Dow and S&P, and closer to 2% down in the NASDAQ. MBS 4.5's ended 2 ticks up on the day at 100-27 and the 10yr gained a tick despite some curve steepening (in other words, 10's gained, 2's gained more) to end...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.