Posted To: MBS Commentary

Bonds traded either side of unchanged early in the day Little, if any response to GDP Bigger move seen after the end of the auction cycle Not a huge rally, but enough to re-enter previous range Bond market reaction to Treasury auctions has been sporadic at best for several years now. They're just not the market movers they used to be. But occasionally, the overall start and stop of an entire week's auction cycle does something to change the tone and shift the balance of buying and selling. Long-time MBS Live member Jeff Anderson coined the term "PSR" long ago, which stands for the proverbial "post-supply rally" that we hope to see after the last auction of any given auction week. Today was that day for the current week and indeed the broader tone brightened immediately...(read more)

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