Posted To: MBS Commentary

Intraday Weakness vs Bigger Picture Strength There comes a time in the midst of an aggressive snowball rally (or sell-off) in the bond market where we’re forced to consider the mortality of the short term trend. As 10yr yields jumped up almost 10bps in a few short hours, today was that day for the current move. Context is important though, and the weakness left Treasuries only slightly worse off than yesterday’s close (MBS are still slightly stronger with a few hours to go). Considering yesterday’s closing levels represented an immense rally from the previous week, it’s hard to say which side is making the more compelling point. Bottom line, there’s certainly reason for caution, but not necessarily strict orders to abandon hope. Econ Data / Events Fed MBS Buying 10am, 1130am…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Published On: July 20, 2021 / Categories: Mortgage News /