Posted To: MBS Commentary
"For no apparent reason" is a bit of an overstatement. There are several plausible reasons that bonds could be rallying as well as they are at the moment-- not the least of which being the extent to which they sold off at the end of 2016. The rationale for the 2016 sell-off was somewhat tenuous, given its size. MBS Live has been steadfast in saying that we were not seeing a 1:1 ratio of justification and market movement. Reason being: the justification in this case was the " growth and inflation " potential associated with the new administration combined with the fact that any major bounce in yields right now might make it look like a decades-long bullish trend was coming to an end. Even traders who didn't believe in that narrative were best-served by pushing rates higher...(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/2lSSASa
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