Posted To: MBS Commentary
For some of you, this may seem very basic. For others, hopefully it will serve as an eye-opener or even just a useful refresher. I got the inspiration to write this after seeing two different news articles on bonds. They both made the same underlying point but used completely different words : "higher" and "lower." From a bond market participant's point of view, when bonds are "stronger," they're moving higher in price and lower in yield. When they're weaker, the opposite is true. This is just about the only thing you should take for granted when digesting bond market news here and elsewhere. Even then, this requires knowing that you're in the presence of bond-market-focused journalists (safe bet here). Things get trickier as we explore other combinations...(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/2fvMnuj
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