Depending on if you appeared this morning, MBS costs might have been crimson or inexperienced, and the hole between any two quotes was moderately massive (1 / 4 of some extent or extra at occasions). This has to do with the continued deterioration of liquidity within the MBS market. The following chart explains this finest. The inexperienced line is what consumers are prepared to pay and the orange line is the place sellers are prepared to promote. The blue lean measures the hole between the 2. The greater the blue line, the more severe the
As for bonds on the whole, they have been weaker in a single day, however have moved again into constructive territory in early home buying and selling. In the marginally greater image, the previous few days have been principally about reacting to final week’s Fed announcement. This put normal upward strain on longer-term yields attributable to steadiness sheet normalization. Shorter-term yields have been large winners although, as seen by the steepening of the yield curve (inexperienced line transferring greater).