MBS RECAP: Uneventful Conclusion to a Crazy Week
Posted To: MBS CommentaryReferring to the week of bond trading as ” crazy ” is a bit of a stretch. If we bring stocks into the mix, or if we go back to last Wednesday, it’s been a crazy 7 business days (bonds were closed on Monday). As you’re well aware, stocks were in the spotlight this week and bonds couldn’t have looked much less eager to cheer them on. Granted, bonds did what they were supposed to do–eventually–by rallying in response to a gigantic stock sell-off. But the net effect is that 10yr yields can only say they ALMOST recovered HALF of the ground lost last week. The very lowest yields seen today would have been the highest in 7 years on any other week. But enough of that depressing stuff! We all know this is a rising rate environment. And we also know traders are aware of that fact…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.