Posted To: MBS Commentary

We knew that volume and liquidity would be ramping back up after the holiday break (which is technically still going through this weekend for many) and that the increased activity could bring an increased bias in one direction or the other. But yesterday's relatively strong rally was inconclusive as yields unsuccessfully challenged both the ceiling and the floor of their most recent range (1.95% and 1.86% respectively). That is changing today, but not due to reasons that fall under the category "new year, new momentum." Rather, it was unexpected overnight news regarding potential military escalation between the US and Iran (covered in more detail in this update on MBS Live ) that set the tone. Geopolitical risk flare-ups tend to benefit the bond market and this is no exception…(read more)

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Source: Mortgage News Daily