Posted To: MBS CommentaryUneventful Month-End Day For Bonds, But MBS Outperform Final trial results for Moderna’s vaccine (it’s still really good, by the way) failed to produce a huge reaction in markets overnight, but it did coincide with higher Treasury yields to start the day. As bonds recovered, MBS outperformed–at first, by a little. Then, by a lot. Month-end trading motivations were the only game in town when it came to assigning blame for all of the micro movement. The Fed’s MBS buying operation from 1pm-120pm was clearly the motivation for the final surge in MBS in the afternoon. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Chicago PMI 58.2 vs 59.0 f’cast, 61.1 prev Pending Home Sales -1.1 vs +1.0 f’cast, -2.0 prev Market Movement Recap 08:54 AM Stocks…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.