Posted To: MBS Commentary

Big Bond Spike, Mortgage Rate Defiance, Lock or Float? Today was characterized by an aggressive spike in 10yr yields that paradoxically followed a much weaker jobs report. The x-factor was/is the motivation that such a report could provide for lawmakers to make something happen on the stimulus front (bigger, sooner, or both). And bonds don't like stimulus. Treasuries were hardest hit. MBS said 'twas merely a flesh wound. And mortgage rates said "wait, what? I thought I only needed to look at lender margins." In other words, mortgage rates did best of all. The question of how to balance that resilience versus the potentially disconcerting trends in the broader bond market is the focus of today's huddle video. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am…(read more)

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Source: Mortgage News Daily