MBS RECAP: Bonds Weaker as Supply Weighs

Posted To: MBS Commentary

Bonds were stronger during Asian market hours this morning, but things changed quickly as European trading got underway. Relative to Treasuries, European bond markets blasted toward higher yields fairly quickly. Blame can be spread fairly evenly between data, new debt supply, and the ongoing selling trend in global bond markets. (New debt supply refers to new bonds coming to market, competing for investors' affections. Econ 101: higher supply = lower prices). This morning's economic data didn't present too big a hurdle for bond markets. New Home Sales came in just shy of expectations and the previous …read more

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