Posted To: MBS Commentary
The Trend is Not Your Friend October has been one of those unpleasant months where bonds have several reasons to weaken, few to rally, and where the market hasn't expressed any interest in departing from the logical baseline. In other words, rates are supposed to be rising right now, but they need to be careful not to rise too quickly for a variety of reasons. We're left with a slow motion train wreck of sorts. We know what's happening, and we just have to sit and watch. Could things change? Certainly. There are several reasons they might (even if not all of them are pleasant), but that's a "what if." The logical baseline is an unfriendly trend. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Housing Starts 1.555 vs 1.620m f'cast, 1.580 prev Building Permits…(read more)
Source: Mortgage News Daily
