Posted To: MBS Commentary

We'll have to be careful about thinking or saying that bonds have "confirmed" any sort of shift when it comes to established ranges or trends. The last time we were in such a position was late last week when yields were clearly breaking up and out of the range, potentially signalling a troubling shift higher in rates. How laughable that fear is now! Well, to be be fair, the fear isn't laughable. It was based on actual market movement that had already happened. The better way to say it would be "how laughable would that fear have been if we knew what the following week would hold. Yes, we did entertain the possibility that bonds were panicking a bit in the wake of last week's data only to be saved by the Fed, but the extent to which bonds have allowed themselves to…(read more)

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Source: Mortgage News Daily