Treasuries Slide Sideways as MBS Outperform

The most notable development today was the outperformance on the part of MBS.  The most obvious culprit would be the looming Treasury auction cycle logically causing more anxiety for Treasuries. There’s also the distinct steepening of the yield curve, which tends to favor MBS when it’s happening in moderation.  Additional factors are discussed in today’s video, but ultimately don’t really have a bearing on…