Posted To: MBS Commentary

10yr yields broke below 1.075% yesterday–a level that had proven tough to break despite multiple attempts in the past 2 weeks. The move followed several large block trades that provided leadership for an otherwise range-bound market. Some reports suggested the big move lower in stocks and the rally in bonds had to do with Senator Schumer pushing the stimulus timeline back to “mid-March.” While that looks entirely plausible for the stock market, bonds were already on the move before that, and the big trades hit more than 10 minutes before the first Schumer-related news hit the wires. In general, there are strong cases to be made AGAINST big moves in either direction unless new data or information come to light that speak to the growth outlook in some significant way. Monday’s…(read more)

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Published On: January 26, 2021 / Categories: Mortgage News /