MBS Week Ahead: How Low Can Rates Eventually Go?
Posted To: MBS Commentary
The bond market begins yet another week with rates in a holding pattern at historic lows. With coronavirus being the primary motivation for rates, it wouldn't be a surprise to see indecision continue until we get a clearer idea of how things will shake out with respect to the pandemic vs the global economy. In fact, apart from the all-time low mortgage rates, things have been downright boring when it comes to the underlying bond market driving those rates. Absent a vaccine-related breakthrough, there's not much for the bond market to do besides hurry up and wait. After all, even if there is amazing news about a vaccine trial, that's only worth a smaller-scale, shorter-term bump for markets until the stuff actually makes it into widespread circulation and proves its worth. Between…(read more)