Posted To: MBS Commentary

Bonds find themselves in an interesting position heading into February. On the one hand, there's a well-established tepid recovery narrative that coincides with gradually rising 10yr yields for the past 6 months and, more recently, mortgage rates that begun to take notice. On the other hand, several of the inputs driving those trends are open to criticism, push-back, or other intervening factors that may collectively say "not so fast" to the rising rate trend. Econ data can bat for either team in this regard and this week brings the month's biggest reports with ISM PMIs and the big jobs report (NFP). A unified message from the data will likely matter to the bond market, but it might be hard to tell unless those "not so fast" factors are staying silent. For the sake…(read more)

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Source: Mortgage News Daily