Posted To: MBS Commentary

Today is off to a relatively tame start with yields trading in the narrowest range of the week so far. It also marks the 3rd straight day of modest recovery and ground-holding following 4 straight days of heavy selling that began last Thursday. That selling spree served to break yields up and out of the Aug/Sept range. Now this week's ground-holding is making a case for a new, shorter-term range (1.48-1.56 in 10yr yields). Ranges that narrow rarely last for long, but we'll likely need to wait for next week to see which side is broken. Until and unless yields move back below 1.435, this week's stability is still best seen as part of the digestion process of a move toward higher yields. Does this mean rates are doomed to continue higher and higher? Let's talk about this for a…(read more)

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Source: Mortgage News Daily