Posted To: MBS Commentary

There is always that one stomach-churning day that arrives in the midst of an epic bond rally that makes you question everything. Well, perhaps we don't need to question "everything" as much as we need to ask ourselves if we've just seen the beginning of the end of this massive drop to all-time low rates. Today was that day and it makes the coming days very interesting indeed. Rewinding the tape just a bit, we came into the domestic session easily trading at all-time lows in 10yr Treasury yields but with stocks doing a pretty good job of holding their ground. That combination frequently suggests markets are feeling like central banks are about to get more friendly. Indeed that was one of two key considerations for the day as rumors swirled about coordinated global central…(read more)

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Source: Mortgage News Daily