Posted To: MBS Commentary

Just like early June, we're once again forced to consider that several weeks of upward movement in yields means the lows are behind us for now. Just like early June, there are reasons to doubt that and reasons to fear it. On one hand , we could make a case that the bond market will experience ongoing and indefinite support due to the potentially permanent economic changes associated with coronavirus. Chief among these is the potentially permanent destruction of jobs–not the ones that return if covid is mostly defeated, but the ones that aren't coming back–either because companies realized they can live without them or because companies have gone out of business, leaving power to consolidate in the hands of fewer, bigger companies. Additionally, there's the risk that winter months…(read more)

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Source: Mortgage News Daily