Posted To: MBS Commentary

After days like Monday (in which the bond market lost ground at the fastest pace in months due to the Pfizer vaccine news), we can see one of three things: a quick bounce back, a pause for reflection, or additional selling pressure. European traders made a case for the latter overnight. This leaves today's session to either confirm an increasingly weak trend or make a case for some semblance of a sideways grind. The stronger response (i.e. that "quick bounce back") seems to be off the table. As such, defense is the best defense until further notice. This isn't to say that rates are doomed to continue to rise and never return to current levels–simply that this trend is currently not your friend, and it hasn't been for months now. Things are particularly tense at the moment…(read more)

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Source: Mortgage News Daily