Posted To: MBS Commentary

With the Fed out of the way, coronavirus cases still growing rapidly, and no major correction seen in the bond market, the question on everyone's minds is: how low can we go? While the answer may not depend entirely on the evolution of the coronavirus news, that's definitely the biggest and most reliable source of bond market motivation at the moment. In other words, the answer ALMOST entirely depends on coronavirus. In that regard, we've seen bonds begin to slow their roll compared to the initial, panicked move that began the week. Overnight low yields of 1.553 are the lowest we've seen in months, but they represent a fairly small improvement from the 1.579 and 1.570 lows of the past two days respectively. They also leave us just microscopically above the 1.55% technical level…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Source: Mortgage News Daily