Posted To: MBS Commentary

Last week ended with snowball selling in the bond market. Given the approach of a holiday weekend, there was a chance that the weakness was overdone and that we'd see a bounce back today, but it didn't take long for those hopes to be crushed in overnight trading. This is the kind of bond market weakness that forces analysts to find/amplify root causes after the fact, because there really hasn't been a strong case for this much selling (even if there's a well-understood case for steady selling in general). To be clear, evidence in the "well-understood case" is as follows: Plummeting covid case counts Businesses weathered the Dec/Jan surge much better than the initial lockdowns in the Spring Vaccine distribution improving Economic data at home and abroad has been resilient…(read more)

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Source: Mortgage News Daily