Posted To: MBS Commentary
Last week was the 7th straight week of higher bond yields–something we haven’t seen since Q2 2009, when bonds were undergoing their first correction to the massive rally brought on by the Fed’s QE response to the financial crisis. This time around, bonds are undergoing a correction to the massive rally brought on by covid. You’d have to go back to at least 2004 to find an 8-week sell-off, or all the way to the 80’s to find a truly obvious example. Point being: sell-offs have historically begun to collapse under their own weight when they last this long–even if that “collapsing” only amounts to a temporary reprieve. While that doesn’t guarantee we’ll end this week at lower yields than last week, the odds continue to improve. All that having been said, none…(read more)
