Posted To: MBS CommentaryLate June through late July saw 10yr yields trade in the ‘same old range’ with lows centered on 2.81 and highs on 2.89. That range was broken at the end of July but has since come back into fashion thanks to emerging market uncertainty, a slight softening from the Fed, and trade war risks. Until this week, it looked like bonds may have tried to challenge the lower end of that range. Now, as the second day of weakness already looks to be well underway, we’re at more risk of breaking the ceiling than the floor. Progress on trade and all-time high stocks are arguably behind yesterday’s bounce. This morning, a small group of headlines (another snippet about trade with Canada and a new story about a potential German bailout of Turkey ) is adding to the weakness. Unfortunately for…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631