Posted To: MBS Commentary

Bonds remain in the midst of a very large and sustained sell-off. Generally speaking, the rising rate environment is a logical byproduct of pandemic progress with acceleration on both fronts beginning in February (i.e. faster yield spikes = faster vaccinations and faster decline in case counts). Combine that with the fact that the US is very much leading the way out of the pandemic in economic terms and it's no surprise to see some traders citing Biden's spending/vaccine announcement yesterday as stirring up another round of generalized selling pressure at home and abroad. That's not to say this is the only reason bonds continue to suffer. After all, we would already assume vaccine infrastructure is going to move as fast as it can (with little additional benefit from improvements…(read more)

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Source: Mortgage News Daily