Posted To: MBS Commentary

The bond market has entered a period of consolidation after the recent run up toward 1.0% in 10yr yields. Whether we're looking at the market action itself or the underlying fundamentals most likely to inform movement, "yeah buts" abound… a con for every pro. Fortunately, at least one of these pro/con pairs is so "big picture" that it serves to limit the overall volatility (hint: short-term covid impacts vs long-term vaccine impacts). But "Covid vs the economy" is really more of a backdrop against which smaller scale volatility will play out in the coming year. The "backdrop" could involve a 10yr yield range of more than 100bps while the "smaller scale volatility" is quite limited depending on the time frame in question. If we're talking…(read more)

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Source: Mortgage News Daily