MBS Week Ahead: Bond Markets Won't Miss October

Posted To: MBS Commentary

It's no mystery that the prevailing trend in bond markets has been negative for several months. At first , this was no big deal, as Treasury yields just hit all-time lows in early July. Coming off all-time lows, it's easy to forgive a bit of a corrective bounce. After all, rates can't go perpetually lower without blowing off some steam from time to time. With that in mind, things weren't too alarming heading into the end of August. True, the low yields on any given day were trending higher, but the high yields remained under a ceiling of 1.60%, in general. That began to change in early September as the first hints of European Central Bank tapering begin trickling in. Yields tried to break back below 1.60% at the end of the month, but were only able to hold it for a few days...(read more)

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