Posted To: MBS Commentary

In case you're just joining us, there's a consolidation going on in the bond market. That means yields are trading in a progressively narrower range after making a relatively bigger move. It happened in grand fashion in the second half of 2019 and we're seeing a smaller scale example so far in 2020. The "relatively bigger move" in question January's drop in rates, precipitated by the ramping-up of coronavirus fears. In many significant ways, coronavirus continues keeping a lid on yields, even though traders are also considering things like Fed policy, the 2020 presidential election, and economic data. Econ data would be a lot more significant if it weren't for coronavirus. Reason being: the current crop of reports must now be taken with a grain of salt because…(read more)

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Source: Mortgage News Daily