MBS RECAP: Volatility in a Narrow Range


Posted To: MBS Commentary

For all of the apparent drama and volatility experienced during the past 2 weeks, it's easy to overlook just how narrow the range has been. There's no simpler way to say it than this: for the 8th straight day, 10yr yields closed between 2.375% and 2.42%. Today saw yields push the higher end of that range, with a 3pm close of 2.41 and intraday highs of 2.425. It's also fair to say that the bias inside the range has been negative–at least if we're looking at the past 3 days. During that time, we've seen a decided trend of "higher lows" in intraday yields as well as other " risk-on " indicators like stocks and Yen/$. In addition to that general "risk-on" trend, today's bond market weakness got a boost from a decent Q4 GDP report. This was…(read more)

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