Posted To: MBS Commentary
Last Wednesday brought the sharpest sell-off to the bond market in over a month. Bonds continued to weaken on the next two relevant trading days (Mon/Tue of this week), but at a progressively less intense pace. At the risk of jinxing it, this pattern suggests bonds may find some support soon. To be clear, that support doesn’t carry an implication that lasts more than a few days. It’s more like the bond market is showing signs that it is going to make an attempt to hold its ground somewhere near current levels. There are no big market movers on tap in terms of scheduled econ data today, but there is a looming specter of Biden’s Fed Chair announcement. As far as anyone can tell, it’s between Powell and existing Fed governor Lael Brainard. In general, the bond market would prefer…(read more)
