MBS RECAP: Pushing The Worst Limits of The Definition of “Flat”


Posted To: MBS Commentary

Last week, I noted that the current week wasn't likely to see bond yields rise because we'd just had 3 straight weeks of clear moves higher. We don't really get "4th weeks" in cases where the 3 bad weeks occur in the midst of a trend that's already flat or moving higher (as is the current case). As bonds head for the exits, 10yr yields of 2.66% are right in line with last week's latest levels. In other words, this week was indeed "flat," but it sure didn't feel like it. One of the reasons is that last week ended on a bad note with yields running up to their highest levels by the end of the day. That made it seem like almost anything would be better in comparison. Instead, we got slightly higher yields on a few occasions this week and were never allowed…(read more)

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