Wednesday, September 27, 2017

MBS RECAP: Treasuries Tank on Trump Tax Talk; MBS Not So Much

Posted To: MBS Commentary

While MBS definitely did sell-off today, and while mortgage rates did indeed move higher, it was Treasuries that took the brunt of the damage. Specifically, the longer-term Treasuries, like 10 and 30yr bonds were hit hard today with little other than the release of Trump's tax proposal to blame. At the very least , the tax plan--which began to leak yesterday afternoon--put upward pressure on rates overnight. There are multiple reasons being offered for this reaction and none of them are overly compelling. After all, this is just square one for actual tax legislation. We're still very far from any actual changes, and those changes are certain to bear precious little resemblance to the "best-case scenario" offered up by the administration. So why would rates react so much? That's...(read more)
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from Mortgage News Daily http://ift.tt/2wl1BFA

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