Posted To: MBS Commentary

By mid-November, bonds were rallying after hitting their weakest levels since the start of the pandemic. Due to the timing (i.e. heading into a holiday week that that's notorious for hitting the pause button on prevailing momentum) we couldn't be sure if the friendly bounce was actually friendly or just a byproduct of position-squaring ahead of Thanksgiving week. Traders' hands were largely tied for the only remaining full trading day of November (Monday the 30th), but were free to move about the cabin by last Tuesday. Whether it was due to the stimulus headlines on Tuesday morning, or simply a flood of "new month" trading positions, it was clear that yields were moving quickly back up toward their highest levels in months. At that point, they had a choice between one…(read more)

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Source: Mortgage News Daily