Posted To: MBS Commentary

10yr yields were at the bottom edge of a months-long uptrend heading into the Georgia senate election. One result would have helped them break out to lower yields while the other all but guaranteed a break up and over 1.0%. We got "the other," and bonds have been trading fairly logically since then. The next big question is whether or not there was additional negative momentum waiting for an opportunity to strike. So far, the answer is not looking great as this morning's yields are already slightly higher than yesterday's highs. Here's how the past few days have looked in the context of the longer term trend: Zooming out a bit helps us visualize the narrative of gradually higher yields since turning the covid corner this past summer. But wait, you say? How can I say we've…(read more)

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Source: Mortgage News Daily