Posted To: MBS Commentary

Yesterday's bond market weakness prompted a conversation about the limits of the current rally. It went a little something like this (<—-that's a link you can click). For the non-link-clickers out there, here's a recap: Bonds have been in a clearly-defined rally trend since June. Bonds lost ground at a moderately quick pace yesterday after hitting new record levels the previous day The MBS chart was the bigger concern, but the Treasury chart helped to put things in context The conclusion was that weaker days come with the territory and that if the broader trend was under serious threat, we'd need to see significantly more weakness for more than just one day So far today, the outlook described above (the one about yesterday being a nominal bounce in a bigger-picture rally…(read more)

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Source: Mortgage News Daily