Posted To: MBS Commentary

Despite a bit of 2-way trading, bonds are starting the day in slightly stronger territory. Pandemic concerns remain the most obvious source of inspiration for bond buyers while pandemic hope does the same for sellers. The news cycle since Friday bears this out with a raft of negative covid news pulling yields and stocks lower at first. The legislative stalemate over the Build Back Better bill played a strong supporting role. Pushing back in the other direction was news regarding the efficacy of Moderna's booster on omicron. All in all, the trading range is fairly narrow. One can't help but notice that yields are about as low as they have been for several months. To be sure, given the state of inflation and central bank tightening, yields are already lower than almost any forecast from…(read more)

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Source: Mortgage News Daily