Posted To: MBS Commentary

"Things were fairly flat for most of the overnight session, and 10yr notes got as low as 1.99's earlier in the morning when the potential inability of Greece to reach workable bond swap deal with private investors and the IIF was center stage. Things changed course a bit when a German official announced that Germany is discussing running the EFSF and ESM simultaneously. This started some downside momentum in bond markets that hasn't really stopped until moments ago when 10's topped out just over 2.06. Fannie 3.5's are down only 3 ticks to 102-19, a well-traveled pivot point for MBS. It's still not clear if the morning weakness has run its course." - MBS Live There are no significant scheduled economic reports today. The same is true for Tomorrow, except that it marks the inception of the 2...(read more)