Posted To: MBS Commentary
What’s Up With Today’s Big Sell-Off? It’s not nearly as surprising to see bond yields breaking technical ceilings today as it was to see them bouncing at a technical floor yesterday. By confirming the taper timeline, the Fed effectively stood aside and allowed nature to take its course in the bond market. The most natural trade of the past 1.5 years has been covid. Viewed in that lens, 2021 is extraordinarily simple. Rates spiked quickly with vaccinations as case counts plummeted. Rates moved lower as concern over the delta variant grew. And now that the new school year is well underway and case counts are falling, it’s no surprise to see yields confirming a sideways-to-slightly higher trend by breaking up and over 1.37% (10yr yields). Is this the only thing moving markets today…(read more)
