Posted To: MBS Commentary

Thinking about the bond market in terms of rates and yields affords certain analytical luxuries. One is the ability to think in "upside down" terms where fans of low rates hope to break floors and find footing on ceilings. The most recently established floor for 10yr yields was 1.575 as of the end of last week. Yields had bounced there several times without any solid attempt to break through. The over-the-weekend gains changed things. With yields beginning the week yesterday at 1.54% and change, we had a clear first line of defense at the 1.575 ceiling. Traders didn't waste much time testing its strength yesterday as there was a very quick move from 1.54 to 1.575 early in the day. But the ceiling held and it endured 2 additional bounces in the overnight session. Now in the domestic…(read more)

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Source: Mortgage News Daily