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Originally Posted by dalakhani
mbs, especially at the low coupons, took the worst single day beating in at least ten years or as far back as i can remember.
10 year treasury yields have gone up 100 bps in less than a week.
35 billion dollars was up for govt repurchase and they bought back 7 billion. What does that tell you?
Well, it is telling the markets that there is a limit to the government's buying. It also gives us sneak preview of what it will look like when the govt will stop buying. Not pretty.
I would imagine there were some unhedged positions that got absolutely destroyed today.
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dalakhani we are broke are we not? we just can't keep the printing presses running forever , at some point there will be a day of reckoninig, it will not be pretty , we will have a land of have's and not's - i think the middle is doomed , i hope i'm wrong