Posted To: MBS Commentary

Treasury Trading Trends Coming and Going Way back in early 2021, steepening was all the rage. That refers to traders’ preference for shorter term bonds vs longer (the result is a steeper yield curve). Steepening stalled in Feb/March and then suffered its worst defeat in a long time after last week’s Fed announcement (thanks to the dots). The resulting “flattener” trade was big and fast enough to merit a corrective bounce today. Simply put, longer term yields surged higher and short-term yields barely budged. It didn’t help that Fed speakers were freely talking about tapering today (tapering hits longer-term bonds hardest). Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:00 AM Much stronger in Asia (big stock losses and more ‘flattener’…(read more)

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Published On: June 21, 2021 / Categories: Mortgage News /

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