MBS Outperform Treasuries As Greek Bailout Beats Down Benchmarks

Posted To: MBS Commentary

Whereas the 10yr note lost a full point in price, and backed up in yield 12 bps, MBS 4.5’s were down only 5 ticks to 101-09 The soon to be “in the spotlight” June coupons lost 6 ticks and ended right on 100-28. No coincidence? Stocks went on a tear, but remained in a bearish trend overall. Auctions coming up tomorrow. Uncertainty and Risk pick back up. Like AQ said, “rates await confirmation of shift in sentiment.” The simple fact that stocks rallied big and treasuries sold similarly does not necessarily mean that “low rates” are heading higher due to the earlier news about the Greek bailout. It’s a bit of a sticky situation though… If we’re “playing the range until the range plays us,” we actually held fairly well within recent bullish…(read more)