Black & Blue Friday… November 29, 2013 I am sure most of you are recovering from an early morning shopping spree. Unlike many retailers today, the Bond Market did not have a long line of investors waiting to purchase mortgage-backed securities(MBS). Maybe we should have a sale… The market was closed yesterday for the Thanksgiving holiday after a sell off caused a late afternoon re-price Wednesday. Economic data consistently performed better than forecasted and it hit the MBS market hard. The MBS market opened slightly lower due to low trading values. Apparently bond investors don’t camp out for early morning deals. The higher coupons remain headline sensitive especially with headlines regarding Fed tapering and the nomination of Mel Watt. Sale on HARP-able bonds aisle 8. Treasuries fell overnight extending their first monthly loss since August. This move is based on speculation a U.S. jobs report due out next week will be strong enough to question the Federal Reserve’s bond buying program. Maybe it’s time to talk about a budget. Next week everyone should return from their turkey induced stupor. The economic calendar is full of employment data that investors have been eagerly awaiting.
