Posted To: MBS Commentary

Before we talk about anything remotely negative for the bond market, let's lay out some context. The technical ceiling in 10yr yields that we'll be examining today is 0.73%. Yields have been within 10 tiny bps of that level every single day since mid August and they were as high as .95% in early June. In other words, we're putting relatively insignificant market movement under a microscope. The perpetually low/sideways rates of the post-covid market environment force us to go to such extremes. All that having been said, there will be a bigger move toward higher yields at some point. While that's probably not what we're seeing take shape here, it's never a bad idea to consider risks on the road ahead–especially when things start deteriorating at the beginning of the…(read more)

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Source: Mortgage News Daily