MBS Day In advance: Bonds on Edge as Tax Vote Could Occur At Any time

Posted To: MBS Commentary

Bonds are commencing the day in around unchanged territory, but that&#039s not a good factor as much as the more substantial image is concerned. “Unchanged territory” usually means that yields are suitable on the edge of a pretty long-expression vary. In actuality, with the exception of failed breakout attempt in late October, 10yr yields have held less than a ceiling of 2.forty two% due to the fact March! It&#039s not just a ceiling that saw an isolated bounce possibly. The 2.four-2.forty two zone has been attacked on numerous instances–every single time acting as assist for an impressively resilient bond market place in 2017. Now with a tax monthly bill vote looming in the Senate, we could be looking at “the factor” that finally challenges that ceiling (and beats it). At the pretty the very least, it seems that bonds are staging for this eventuality. If we do see a…(go through far more)