Posted To: MBS Commentary

Just when you thought rates were bouncing higher after hitting 6 month lows, the new week begins with bonds re-staking a claim to the recent, stronger range in July/Aug. 10yr yields are back in the 1.2's, and MBS are at the best levels in more than a week. Most everyone is tired of pandemic-related news, but it continues to be the key source of motivation for the economy and the bond market whether directly or indirectly. The Fed's rate-friendly policy stance is another manifestation of covid's economic impacts. And just when the Fed is finally getting close to dialing back that policy, the delta variant brings renewed concerns. Bonds are siding with the delta variant until and unless it proves to have less of an impact than case counts suggest. Data is fairly light this week, but…(read more)

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Source: Mortgage News Daily