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MBS RECAP: How Low Can Rates Eventually Go?

Posted To: MBS Commentary

How Low Can Rates Eventually Go? Until further notice, we can expect to see the bond market drift in a fairly consistent range, making modest course course corrections depending on the covid outlook. We can also dig into the nuts and bolts of the mortgage bond market to ask and answer questions about how low rates can eventually go. The answer is actually surprisingly simple. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:16 AM Bonds opened the overnight session slightly stronger. Stocks were slightly weaker. No major movement since then, but a slightly stronger bias in bonds in early domestic trading. 11:43 AM Yields found bottom right in line with Friday's lows (.60%) and have been moving higher since roughly 9am. 2.0 UMBS bounced…(read more)

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