Posted To: MBS Commentary

Welcome to the last few trading weeks of 2019–3 or them to be precise. After that, the Christmas and New Year holidays will mean we can't trust the last 2 calendar weeks of the month to accurately represent investor consensus. Speaking of investor consensus, that's a big problem at the moment because it's really up for debate. Bonds surged in August when trade tensions kicked into higher gear. Since then, they've been consolidating and moving gradually back toward higher yields as the more dire economic possibilities have failed to materialize. Last week's placeholder trading sessions left that trend intact as yields failed to break below 1.74% (10yr) or the upwardly sloped trendline at the bottom of the consolidation range. Now this morning, as markets lurch back to life…(read more)

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Source: Mortgage News Daily