Posted To: MBS Commentary

Following Monday's vaccine-inspired bond rout, we're seeing markets take the middle path. Stocks corrected to pre-vaccine levels later that same day and have been flat since then. Treasuries retained most of their losses, but haven't broken above the important 0.96 technical ceiling in a meaningful way. Today brings the opportunity for bond bulls to continue working up the courage to "buy the dip" in this week's bond prices (or "buy the spike" in terms of yield). Despite modest gains this morning, the jury is still very much out. If anything, broader market momentum is sideways. The bounces at the 0.96 ceiling are "nice," but at the risk of letting hindsight cloud the analysis, I would say such bounces tend to be slightly more probable than average…(read more)

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Source: Mortgage News Daily