Posted To: MBS Commentary
Yesterday’s bond market weakness ran the risk of signalling an end to the winning streak enjoyed since January 12th. Those gains were fairly steady and they took yields from the very top of the prevailing trading pattern almost all the way to the bottom. If early trading is any consideration, today is set to confirm the negative shift. In fact, yields are already arguably halfway back across the trend channel (the parallel yellow lines that have guided the broader bond market correction since August). Here’s a wider view: Those who primarily follow the world of interest rates in terms of the mortgage market may be wondering “what correction since August?!” That’s because mortgage rates cut a very different path for most of 2020. Here’s the same chart with mortgage…(read more)
