Potentially Decent Day Turns Sour After 10yr Treasury Auction
Potentially Decent Day Turns Sour After 10yr Treasury Auction
Abstract
Potentially Decent Day Turns Sour After 10yr Treasury Auction The first day of the new week began innocently enough. It was arguably a strong start with MBS up roughly a quarter of a point from Friday afternoon's lows for much of the morning. It wasn't until the 1pm auction of 10yr Treasury notes that things really began to deteriorate. 10s hit the 3pm CME close up more than 4bps at 3.36 and MBS were down roughly an eighth on the day. 10yr yield down 3.6bps at 3.279. MBS down 2 ticks on the day but nearly a quarter point from the highs. 10yr yields are up 4bps on the day at 3.356 and MBS are still at the lows of the day, down 2 ticks on the day and a quarter point off the highs.