Posted To: MBS Commentary
Rates and yields have been trending steadily higher since hitting all-time lows in early July. Those lows were most immediately attributable to the Brexit reaction, and thus the initial bounce back toward higher rates wasn't too severe and the resulting uptrend was barely detectable. 10yr yields essentially leveled-off in a sideways range surrounding 1.55% and that seemed to be that. Enter early September. Bond volatility increased significantly after European Central Bank (ECB) President Mario Draghi kept quiet on the topic of extending the ECB's asset purchases set to expire in March 2017. Granted, that was 6 months away at the time, but if anyone likes to flash his bazooka (i.e. verbally promise/threaten to use as much aggressive monetary policy as needed), it's Draghi. Markets...(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/2e3Jr1Y
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