Posted To: MBS Commentary

It remains to be seen what impact tomorrow's jobs report might have given that it would take an atrociously weak number to derail the Fed's November tapering aspirations and an atrociously huge number to accelerate them (would require an intermeeting "emergency" policy announcement… not too likely). Still, it's NFP day and so there's always a chance that we see a bigger reaction. One additional reason for the risk is the convergence of yields inside the new consolidation range. Sellers seem intent on testing the ceiling at 1.56% (10yr) so far this morning. The weakness in bonds over the past 3 days has been a source of debate and speculation among market participants. A few have even mentioned Putin comments driving down oil prices which, in turn, is helping stocks…(read more)

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Source: Mortgage News Daily