Posted To: MBS CommentaryMBS Give Up Yesterday’s Gains Despite Decent Start MBS have a bit of a problem. In the past week, they’ve gone on their weakest run versus Treasuries since the crazy volatility seen at the start of the pandemic. The problem began with holiday-week illiquidity but shifted into higher gear early this week as Powell called for an accelerated taper schedule. Today was actually decent in terms of underperformance, but in the context of the past 5 days, MBS are trading near their weakest levels while Treasuries are closer to their strongest levels. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Jobless Claims 222k vs 240k f’cast, 194 prev Market Movement Recap 08:35 AM Slightly weaker Asia then slightly stronger in Europe, but not enough to fully erase overnight weakness. Flat in…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.