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MBS Day Ahead: April Set to End as Narrowest Month For Bonds in 2020

Posted To: MBS Commentary

January, February, and especially March were wild months for bond market volatility. Coronavirus was increasingly responsible for that volatility during that time. It's interesting, then, and perhaps a testament to the market's ability to price in future events that April has been by far the narrowest month of the year in terms of trading ranges, and among the least volatile months of the past few years. The absence of volatility is made all the more impressive by the fact that multiple days in April saw yields close under 0.60%–something they'd only ever done one time before on March 9th. It's impressive because we typically see quite a bit more volatility when yields are pushing all-time boundaries in unprecedented and uncertain situations. There are a few economic reports…(read more)

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