MBS Day Ahead: Time to Talk About a New Rate Ceiling Already?
Posted To: MBS Commentary
Last week saw rates rise at the fastest pace in months in an apparent lift-off from an extended stint near all-time lows. Now the current week looks vastly different with bonds set to improve significantly for a 2nd straight day. Is it already time to talk about last week's highest yields being the ceiling for now? Sure! We can TALK about it, but that doesn't necessarily mean it's going to predict the future. If econ data continues in the same vein as that seen last week, it would be reasonable to see yields continue to grind generally higher. That said, no one would sound crazy if they argued that 10yr yields really had no business surging back up and over 1% just yet. There are still too many unknowns about the economic restart and the progression of covid numbers (which are best…(read more)