The 5 year note auction (39 billion) just hit the tape with very poor response. The issue created a tail of 5.4 bps (very high and bearish) and bid to cover was a measly 1.92 to 1. The results are what traders call a “bow wow” (dog) showing little demand for that yield and duration. Mortgage backs fell like a rock on the news from plus 4/43’s to down 6/32’s.
Results are what traders call a “bow wow” (dog) showing little demand for that yield and duration
About the Author: Max Leaman Austin Mortgage
Great Rates, Low Fees, Close on Time® – (800) 301-3405 Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.
September 28, 2018
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