MBS OPEN: GDP Down 1%, Good Initial Reaction
By:
Matthew Graham
•
Yesterday's Recap
- 7yr Auction much better than previous auctions this week.
- Good midday support from internal trendlines
- MBS fought to adhere to long term uptrend
- MBS Won
Right Now
- GDP out slightly better than expected on the headline, but internal components helping out fixed income. More on specifics in AM post.
- 4.5's up 4 ticks, 10yr down 3 to 4 bps.
Yet To Come
- um....
- A bunch of talking head, analyst, and economist interpretation of GDP details followed by lemming like response that may or may not decrease our fairly decent chances of fading out into the weekend somewhere slightly over PAR on 4.5s...