Posted To: MBS CommentaryBonds ended the day in weaker territory with 10yr yields rising roughly 3bps and Fannie 4.0 MBS losing nearly a quarter of a point. Much like yesterday, bonds lost most of their ground in the overnight session. Much like yesterday, an absence of drama in equities markets gave way to bond losses. Taken together with the last 4 trading sessions, bonds look as though they’re bouncing at 10yr yield levels near 3.06. In that sense, today’s modest weakness offers another bit of confirmation for that bounce. The counterpoint is that yields seemed similarly unwilling to break up above 3.16% today. The general unwillingness to extend a rally or to spike to higher yields is consistent with indecision . Perhaps bonds are waiting for input from the upcoming economic data or from next week’s…(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