Posted To: MBS Commentary

Even before this week, the mid-2021 bond rally exceeded many expectations with the 10yr yield's brief love tap of the 1.25% level last week. It's only Tuesday morning and we're already down to 1.13%. Considering last week's high of 1.42%, it's safe to say we're in the midst of a snowball rally. And it's not without its reasons. Our friend Occam is pretty sure it's mostly about covid, and we're pretty sure he's right. What's up with covid? Oh, nothing much apart from the fact that case counts are rising at their fastest pace since January. The Monday vs Monday increase was substantial (56.9k vs 33.9k). It was also the highest Monday since April 19th in outright terms. The recent ramp in case counts certainly seems to correspond with the drop in yields…(read more)

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Source: Mortgage News Daily