Posted To: MBS Commentary

Last week provided a much-needed recovery that counteracted some of the fast-paced selling seen in the first week of November. Despite the friendly direction of the move, the pace and fervor left something to be desired –at least for those hoping to see clear confirmation that traders were thrilled to buy bonds when 10yr yields approached 2%. To be fair though, one could argue that traders were at least somewhat enthusiastic about that, even if they weren't downright thrilled. The combination of solid support and the absence of fervor reinforces a range-bound theme heading into the end of the year. Major updates on the trade deal can provide plenty of volatility inside a range while actual progress could certainly prompt a breakout from the trend. Gauging the opposite of progress is a…(read more)

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Source: Mortgage News Daily