MBS Day Ahead: Bond Markets Asks: Should I Stay or Should I Go?

Posted To: MBS Commentary

Another day, another chance for bond markets to assess whether they should re-enter the previous 2017 range (or "post-election" range). This is marked by 10yr yields of roughly 2.3-2.6%, but given that we're so close to one of the range boundaries, it's worth noting that 2.315% has been a more specific pivot point that 2.3%. Studies show that saying "two point three one five" makes one sound too poindexter-ish, so it's best to stick to "two point three" in casual conversation. But I digress... The point is that we're on the edge of the old range we just broke below in mid-April. If we treat 2.3-ish as a ceiling over the next few days, it will bode well for our longer-term prospects. With yesterday's somewhat anticlimactic tax reform announcement...(read more)

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