Posted To: MBS Commentary

Sobering Reminder About Rising Rate Trend By yesterday afternoon, the bond market had managed to string together several of the most reassuring days of 2021. 10yr yields were close to 1.50% by the end of the day and the next significant ceiling at 1.62% seemed safely overhead. But only a few hours into the new trading day, 10yr yields surged up to 1.64+, the highest levels in more than year. Average mortgage rates are close to being able to say the same (highest in 11 months). Today's rout provides a wake up call as to the nature of the rising rate environment. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core Producer Prices (y/y) 2.5 vs 2.6 f'cast, 2.0 prev Market Movement Recap 08:51 AM Much weaker overnight with big hits coming at random times for no apparent reason (speaks…(read more)

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Source: Mortgage News Daily