Posted To: MBS Commentary
Bond markets have quickly "repriced" their expectations for future inflation and growth based on the potential policy path of the Trump administration. Past examples of similar "reprices" offer a few clues as to how bad things currently are and how they might play out. In mid-2013, bond markets quickly "repriced" their expectations for Fed policy after the Fed made clear gestures toward the eventual tapering of its asset purchases. The last major low for 10yr yields had been roughly 1.35 and the taper-tantrum high was roughly 3.0--a 1.65% move in total. Yields bounced at 3.0% twice and held a narrow range (in the bigger picture) between 2.5-3.0 for more than a year! In other words, yields rose quickly to reflect their new reality and then waited for the next motivation...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2fZ5t7t
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