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MBS RECAP: Why The Range Risk in Treasuries Matters to Mortgages

Posted To: MBS Commentary

Why The Range Risk in Treasuries Matters to Mortgages We've been following .58% in 10yr yields for months as the best candidate for the bottom of "the range." Now that mortgage rates have largely settled relative to Treasuries, the .58% floor, until and unless we see yields move below .58% and remain in stronger territory, it suggests bonds and mortgage rates may take some time to consolidate or even correct toward slightly higher levels before doing whatever they're going to do next. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) New Home Sales: 776k vs 700k f'cast , 682k prev Market Movement Recap 08:18 AM Stocks and bond yields initially moved lower overnight, but reversed course in Europe. Stocks are still slightly weaker, but bonds…(read more)

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