Articles

MBS Day Ahead: Where Would We Be Without Stocks?

Posted To: MBS Commentary

It's no secret that the bond market has been sideways for a month and a half by even the strictest definitions, and broadly sideways since first settling down from the initial covid-related volatility in March. In terms of specific levels, that's .63 – .79 for 10yr yields since August and .50 – .95 going back to March. No one is under the illusion that rates should be moving consistently higher after last bottoming out in early August. The market knows we're in for a reasonably long haul of historically low rates due to Covid. The market also knows that the fight against Covid means increased Treasury issuance (for a variety of reasons apart from stimulus) and persistently more effort to stoke inflationary fires from the Fed. Both exert some measure of upward pressure on rates to…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Leave a Reply