Good morning everyone – I hope you had an awesome weekend.
After Fridays selloff, the stock market has rallied over 180 bps this morning – despite growing trading instability fears.
The MBS market is almost flat from Friday. MBS’ gained a lot of ground quickly last week but were not able to break above their 50 DMA. The stock market is up today putting downward pressure on the MBS’. However, if the stock market turn like it did at the end of last week, that may give MBS’ the push they need to break above that 50 DMA. We continue to hold a locking bias unless you are able to closely watch the market.