From Matthew Graham at Mortgage News Daily: MBS RECAP: Surprise Snowball Rally as Stocks Swoon Over Global Risks
It remains to be seen how long the stock swoon continues as there is some disagreement about whether the Evergrande drama deserves as much credit as it received today. Either way, bonds simply endured an in-range correction, and they remain more susceptible to Wednesday’s Fed when it comes to volatility risks on the horizon. [30 year fixed 3.00%]
• At 8:30 AM ET, Housing Starts for August. The consensus is for 1.560 million SAAR, up from 1.534 million SAAR.