MBS RECAP: Moderate Gains Keep Hope Alive For a Rate Ceiling

Posted To: MBS Commentary

2.90% or something close to it continues to look like the center of a range of yields that might like to… think about… maybe… potentially… trying… to act as a ceiling for rates. After bouncing at 2.92% yesterday, yields continued lower today. That made today the 12th day since rates first hit 2.90% without moving too much higher. If you're into hope and optimism, this looks like the beginning of a potential bounce. If you're playing it safe or simply not too hopeful, it's just a more convincing consolidation before rates continue a longer-term move higher. Today's economic data was a non-event . Granted, two of the reports were in line with the bond market improvements, but notably, bonds actually weakened somewhat after each of those reports (Chicago PMI and Pending…(read more)

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