Posted To: MBS Commentary
After enjoying a nice rally since July 10th, bond markets are taking the 2 days leading up to tomorrow's Fed announcement to book some profits and get back to neutral territory. Unfortunately, getting back to neutral means "selling bonds" if the prevailing trend had been positive. As discussed in this primer on MBS Live , there are long and short positions. Long positions mean "buying" in the hope that bond prices will rise and yields will fall. A short position means selling in the hope that yields will rise. Both long and short positions signify "open interest." In other words, both positions count as " bets " that are open until they're closed. If you are long Treasuries and rates are moving higher , your position is costing you more and more...(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/2vF6NUR
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