Posted To: MBS Commentary

Lock/Float Considerations Ahead of Jobs Report Bonds made it through Thursday without any notable volatility, let alone actual drama. That's been the case for the entire week as Friday's jobs report has been the obvious attraction. Unlike the rest of the week, post-NFP drama is definitely possible tomorrow, for better or worse. With rates at their lowest levels in 2 months, Treasury yields close enough to the bottom of their recent trading range, and 6 consecutive trading sessions with slightly lower end-of-day 10yr yields, the case for a defensive lock bias is compelling in the same way someone might wish to cash in their chips after a better-than-expected winning streak. That doesn't mean rates can't improve tomorrow (always best to look at that as a 50/50), just that there's…(read more)

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Source: Mortgage News Daily