Posted To: MBS Commentary
The last 2 weeks have seen elevated volatility for the bond market. Omicron concerns took yields lower, but the gains reversed as concerns moderated. We could overanalyze the minutia or simply appreciate the fact that yields are right in the middle of a massive consolidation pattern that's been in play for most of the year. In general, it marks the intersection of trading levels that are suppressed by the pandemic and those that are mostly back to business as usual. Breaking out of that pattern would probably take more news than we can possibly receive this week, but if anything could come close, it would be Wednesday's Fed announcement–the one that likely communicates an accelerate of the tapering schedule. There's some debate over the pace of the probable acceleration. The simplest…(read more)
Source: Mortgage News Daily
