Posted To: MBS CommentaryBonds Still Sideways, But MBS Underperform Bond yields and stock prices bottomed at the same time in the overnight session as markets responded to the news item of the day. In this case, it is best characterized as “buzz” surrounding a new strain of covid in the UK. The rest of the day saw a bounce back in the other direction as investors traded with their minds instead of their hearts (main reason: vaccines don’t care about the new strain). MBS underperformed–modestly at first, then significantly in the afternoon. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:56 AM Bonds improved and stocks slid overnight on news of a new covid strain (not really “new,” but the buzz kept growing). The flight-to-safety phase…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.