MBS UPDATE: 2 Yr Treasury Auction Goes Off Well, But Little Reaction So Far

By: Matthew Graham

High yield of .940, just 4 bps higher than current trading at .900.

Low yield at .79, and median at .91.

Perhaps the most impressive component was the 2.94 Bid-To-Cover--so much for the US credit rating fears affecting auction demand.

Indirect Bid was hefty over 50%.

MBS and Tsy's both like the news by a few ticks, but the periods following such auctions are historically volatile.

Stay tuned, and stay alert, but in both cases, with crossed fingers.

 

MBS QUOTES