Posted To: MBS Commentary

Bonds are off to a much better start today vs yesterday (it wouldn't take much, consider yesterday was the worst day in 2+ months). This morning's producer-level inflation data was also stronger than expected, but fortunately, it's not nearly the same sort of market mover as yesterday's consumer-level data. 10yr yields seem mostly comfortable staging around the 1.68% level and deciding on their next big move after this afternoon's 30yr auction. The 1.68 level can be thought of as the lower end of a small zone, actually, with the higher end at 1.70. That helps the last 24 hours do a better job of conveying the sense of "staging" mentioned above. Revisionist history? Sure, a bit, but there were two days with relevant bounces closer to 1.70 in April. All that to say…(read more)

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Source: Mortgage News Daily