Posted To: MBS Commentary
Bonds rallied today for the first time all week, and fairly well at that! 10yr yields fell more than 5bps and Fannie 3.5 MBS rose nearly 3/8ths of a point. Not much to be mad about there, right? Indeed, there's nothing to be mad about , but there are all sorts of reasons to remain cautious. The rally was driven by a combination of European political drama and short-covering in US bond markets. Here's an external link that does a better job than I can of explaining the Eurodrama quickly. And here's a homegrown link the goes into greater detail on short-covering. The day's best gains were seen during the 2nd half of the European session (which effectively ends at noon ET), but short-covering kept the positive trend intact through the domestic close. To reiterate what I said earlier...(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 https://ift.tt/2IN1Mmy
No comments:
Post a Comment