MBS traded lower during the first hour of the day but made it back into positive territory just after 9am. Treasuries have followed a similar pattern in terms of movement. The bounce in 10yr yields wasn't quite enough to get them back into positive territory though.
Overt market movers are absent today, and traders are left to watch trading levels and other traders apparent decisions in order to make their own. Related markets (like stocks) are having less of an impact than yesterday--at least not in the "minute-to-minute" sense. In the slightly bigger picture however, one might conclude that the presence of very slight gains in stocks makes a case for very slight weakness in Treasuries.
MBS are in more of their own world as tonight's roll and the overall settlement process create buying and selling needs that transcend broader bond market momentum, at least for some. There's no stunning conclusion to be made here, just a potential explanation for why MBS are green when Treasuries are still red.
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