Posted To: MBS Commentary

The holiday-shortened bond trading week began poorly with vaccine news causing a massive yield spike. Tuesday didn't do too much to allay fears, but it did introduce the possibility of a supportive ceiling in Treasury yields. Thursday's trading reinforced that ceiling and today we'll see whether bonds can build on that victory or if they're merely playing strong defense at those higher yield levels. The biggest risk on the horizon is a vaccine trial announcement expected from Moderna any day now. In that regard, bonds are hoping for "no whammies" today, but are likely to remain cautious until the vaccine news hits. If Moderna's announcement corroborates the recent Pfizer announcement, bonds could keep adding to the more sharply negative momentum that began in October…(read more)

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Source: Mortgage News Daily