Posted To: MBS CommentaryRally Week Finds Its Limit After ECB And Auction Bonds were having a great week by the end of the day on Wednesday. Yields had broken the lower boundary of an upwardly-sloped channel that had been intact for more than a month and made it all the way down to the low 1.5s–quite an achievement considering the 1.70+ mark seen less than a week ago. Unfortunately, the rally ran out of steam today. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm GDP 2.0 vs 2.7 f’cast, 6.7 prev Jobless Claims 281k vs 290k f’cast, 290k prev Market Movement Recap 08:41 AM Very flat overnight despite a bit of weakness in EU bonds. No major reaction to GDP, but giving up some gains now with 10yr yields now up .3bps at 1.553 as ECB president Lagarde speaks. 2.5 UMBS are down 3 ticks (.09). 09:30 AM Quick move…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.