Posted To: MBS Commentary

Heading into this morning, it looked as if bonds would have a fighting chance, at the very least. The fight in question is against the big bounce toward higher yields that will inevitably follow a shift in the broader psychology (both market and medical community) surrounding coronavirus. Simply put, as soon as the tide turns in the battle against the disease, so too should the the recent stint of multi-year low rates. Yesterday's trading session was a prime candidate for "day 1" of that correction. This wasn't due to any specific update on the disease, but rather the cues sent by various financial markets. In particular, Chinese equities managed to carve out gains on their second day back from a weeklong holiday. The US bond market also happened to be at a very logical point…(read more)

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Source: Mortgage News Daily