Posted To: MBS Commentary

So far, the correction to the coronavirus bond market rally is only a few days old, but it became much more problematic today. Yesterday was arguably the first day of the correction and at that point, we hadn't seen quite enough weakness to label it as such (merely to offer warnings about the risk of additional negative momentum). But today's weakness was nearly as big. Taken together with the small bounce on Monday, this week is starting to look fairly troubling for bonds . Interestingly enough, this wasn't destined to be the case today. In fact, by 3am ET, bonds were actually slightly better versus yesterday. Then came news of a newly approved anti-viral cocktail purported to treat coronavirus in China. Markets treated headlines as if a cure or successful vaccine had been newly…(read more)

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Source: Mortgage News Daily