Ho Hum NFP Friday; MBS Outperform; 50 is The New 75
Ho Hum NFP Friday; MBS Outperform; 50 is The New 75
After being steadily crushed to the most inverted levels in 20 years, the yield curve was ready for a bounce today (i.e. shorter maturities were ready to outperform longer maturities). This pattern often coincides with MBS outperformance and today was no exception. The short end got a push from several Fed speakers who mentioned that 50bp hikes would still be historically fast and that traders could "pivot" their anxiety to focus on the eventual ceiling as opposed to how quickly we get there. Meanwhile 10yr yields moved moderately higher, which is a decent enough result given the 260k
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