MBS RECAP: Brexit Punt Successfully Delays The Game

Home / Blog / MBS RECAP: Brexit Punt Successfully Delays The Game

Posted To: MBS Commentary

As expected, the result of the emergency EU summit overnight was a hefty brexit extension, giving the UK until 10/31 to approve a compromise deal to leave the EU. At face value, this wasn't the conclusion bonds wanted, because it keeps economic hope alive. Indeed, there's no doubt that yields would have been down sharply overnight if Britain was told "sorry, no deal... you get a hard brexit!" But what about next week and the week after? It's entirely possible that simply moving PAST the big uncertainty would have hurt bonds more than the overnight extension deal. After all the overnight extension deal only put about 2bps of upward pressure on 10yr yields, and it hurt MBS even less. At least this way bonds can benefit from the uncertainty that surrounds the October deadline...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagen...

6597ba9a e84d 4740 845d 2f944129d161 74239114 99d5 40c7 96a2 e24b70e9866a b49aae25 b19d 4efb b1d4 06214a10f8fe 7a8b26f1 7c45 4886 b140 ce9c7a39c791 fcfb3454 bbc2 4545 b21b c5fa5ad9b8eb c7df8db8 4085 4a97 a2a6 54e72f09031e be979b79 6eaf 4492 a694 995aa754ca5f 2f1473cd c30f 478d 8448 40061320fd1e 343e9450 8efd 41a0 b021 2e63f3c34ca9 1e8c52db 7335 4736 ae6f 0ed2e04e564d 996e80a2 0aac 4a2e 9cd2 d7cfb420369a 733d1efd 9701 42b5 953a ed03df5ae7e8 ac102235 8400 49e5 932a 42095c15ec9b 35a4b5e9 fc3d 4ec5 8e54 e92d3c729201 0e461f01 80db 4324 9cf3 9d3b7cc2be7f 48ebdfd7 20d5 4878 a502 0ee6a1c802a0 58522bee 1be7 4f95 9b28 44970b6b97e4 ea96cb54 6203 439c a31b 4795f0afd7a0 e25c3f46 7a42 44c1 9b6c dc4536e8d07b c6b554dc 9e38 426b b36a 09b3b78a3b97 d6b7c7ef 1fba 4fee 8284 8cbd63e2c77a 09d43b39 c7bc 4940 9bc2 321347918019 8e640c69 44f8 463a a1ff 67cf797c8dd1