MBS Day Ahead: Light Calendar Remains; 10yr Auction in Focus

Posted To: MBS Commentary

(NOTE: If you're subscribed to receive MBS Commentary emails, you will have received last Friday's Recap in error this morning. Sorry for the confusion) For the 2nd day in a row, bond markets are generally deprived of potential market movers–at least in terms of scheduled economic data. The calendar isn't totally empty, however. At 1pm, we'll see the results of the 10yr Treasury auction. Although Treasury auctions aren't massive sources of inspiration for bonds, they can serve to highlight certain truths about the state of the market. For example, if the " bid-to-cover " ratio comes in higher than average, is suggests more traders are interested in buying the bond in question. If that strong bid-to-cover were accompanied by a lower-than-expected yield, we could…(read more)

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Source: Mortgage News Daily

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