Posted To: MBS Commentary

With the exception of a surprise stimulus plan announcement or a huge departure from expectations in certain economic reports, the bond market is locked into its final approach pattern ahead of tomorrow's Fed announcement. This involves a range of .87 to .96 in 10yr yields–one that's unlikely to change before tomorrow afternoon. That range is determined by the highs and lows from last week, but .96% has been in play since June when it turned away the summer's only significant threat to ultra low/flat interest rate paralysis. Granted, yields were slightly higher than .96% on a few recent occasions, but that ceiling provided a firm bounce last Wednesday. Moreover, the entirety of December has thus far been characterized by one quick adjustment toward higher yields followed by a linear…(read more)

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Source: Mortgage News Daily