By last Friday, not only had the bond market seen a 2-week improvement for the first time all year, but the ground covered during those 2 weeks was bigger than any other 2 week period going back to the start of the pandemic. That’s the good news. The bad news is that the gains were made possible by yields hitting 3.20% on May 9th. The other bad news is that the gains have been largely dependent on heavy losses in the stock market. As stocks bounce back today, so too have bond yields.
Not only that, but bonds never managed to chase stocks lower during the two most recent flights to safety (lower yields and lower stock prices).
In the bigger picture technical landscape, 2.83 continues to be a good level to watch as rates have struggled to maintain any break below.
Source: Mortgage News Daily