Tuesday, July 12, 2016

MBS RECAP: Bond Sell-Off Continues, Now With 1.53 Times More Anxiety

Posted To: MBS Commentary

The very next day after Brexit headlines sunk 10yr yields to long-term lows in late June, we began talking about "1.53%" in 10yr Treasury yields. This was as much weakness as could be mustered before yields continued their journey toward all-time lows. Yields bounced near 1.53 on several subsequent occasions but never broke firmly through. This, then, became our ad-hoc ceiling for yields in the short-medium term. From the 1.3's last week, rates have risen quickly back to the 1.53 inflection point and stopped there almost perfectly today. That leaves us in a precarious position where any further weakness tomorrow will essentially be making a case for a more prolonged move higher , but where we still have the hope that 1.53 can continue to hold as the perfect little ceiling under...(read more)
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from Mortgage News Daily http://ift.tt/29Vtz3S

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