Multiple factors sparked the heavy selloff in Treasurys on Friday. Traders say selling in the MBS market contributed to the rise in bond yields. MBS rallied sharply Thursday on Fed's announcement to buy the market to support the economy; now profit-taking sets in and the selling is spilling over into Treasurys because MBS traders use Treasurys as a hedge against a further rise in rates. The 10-year note is recently 1 2/32 lower in price to yield 1.875%.
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