Posted To: MBS Commentary

For 2 straight months, and especially over the past few weeks, we've been calling out the Georgia senate election as the biggest ticket market mover for bonds–the one thing that stood the best chance to force 10yr yields to break out of their 0.9 – .96 range. The election isn't even officially over, but the mere "strong probability" of a democratic sweep has been enough for 10's to break up and over 1% for the first time since March 2020. Both left and right-leaning media (and centrists like AP, for that matter) agree that democrats have likely prevailed. NYT: Fox: In the grand scheme of things, the reaction to the election simply keeps 10yr yields inside the trend channel (yellow lines) that has prevailed since early August, even though it represents a clear breakout…(read more)

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Source: Mortgage News Daily