MBS RECAP: Bond Rout Resumes; Duck and Cover


Posted To: MBS Commentary

In the past or under different circumstances, a day like yesterday might not have been enough for me to write a headline like "nice while it lasted." But if you watched yesterday's video and read the analysis, you saw the chart showing the percent change comparison between stocks and bond PRICES (can't look at percent change on a yield). That–along with me flat out saying it–implied we'd need a fresh supply of massive stock market drama in order to sustain further bond market improvement. We haven't had a fresh supply of stock market drama. Instead, stocks have gradually been recovering from Monday's rout, despite some bumps in the road. As such, it is time for the bond market rout to resume. This morning was a bit deceptive, with bonds technically starting in…(read more)

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