Posted To: MBS Commentary
Treasuries and MBS spent most of morning in positive territory Weakness kicked in during/after Yellen testimony Markets were waiting for encore from last week’s “bond-friendly Yellen” Instead, she was balanced, thus no reason for bonds to hang around in the green While stocks, European bonds, Sterling (Brexit panic metric), and other sectors of financial markets were relatively unchanged during US trading hours, domestic bond markets were inclined to continue their weaker trend. This wasn’t immediately apparent as bonds briefly corrected (i.e. stayed in slightly positive territory) at the start of the domestic session. Traders were also prepared for an encore performance from the new, more bond-friendly version of Janet Yellen seen after last week’s FOMC Announcement….(read more )