Posted To: MBS Commentary

We talked about momentum indicators being ‘oversold’ yesterday–a possible prelude to a friendly bounce in bonds. If that narrative is going to play out, it’s running out of time very quickly. There was some potential for a positive outcome early in the overnight session, but as the trading day progresses, bonds are moving steadily back toward their weakest levels. Those with the strongest stomachs can still hold out hope that 10yr yields have temporarily topped out somewhere under 1.33%, but all bets are off if that ceiling breaks today (and we’re only 2bps away at 9am). If the pace of bond market weakness has caught you off guard in 2021, you’re not alone. Many analysts and traders are struggling to justify current levels. In their defense, it’s very easy to get caught…(read more)

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Published On: February 18, 2021 / Categories: Mortgage News /