Posted To: MBS Commentary
If the US/Iran flare up provided an opening act to the unexpected drama of 2020, coronavirus has been the headliner. Before these two events took the stage, there was every possibility that 10yr yields would make good on their threat to break back above 2.0%. After all, 8 of the last 10 days of 2019 saw yields above 1.93%. The counterpoint is that all of that staging just under 2.0% ( without any attempt to break higher) was actually evidence of bond-buying support. Sure, we had a phase 1 trade deal that was expected to clear up some uncertainty among businesses in certain sectors, but not nearly as much as the ultimate deal (not sure which phase that will be?). And the final deal could take months or more (Trump mentioned "after the 2020 election" on more than one occasion). In the…(read more)
Source: Mortgage News Daily
