Posted To: MBS Commentary
Welcome back to the first potentially significant long-term bounce in interest rates since the first half of 2015. Rates haven’t covered as much ground this time around (in terms of either time or losses), but they’ve at least chosen the direction of the breakout from the post-Brexit consolidation. One eerie consideration is the possibility that the breakout of the years first consolidative pattern was purely a function of Brexit, and that the break of the more recent post-Brexit consolidative range is merely the first move in a selling spree that takes us back to path yields were on before Brexit. Truth be told, bonds could weaken much more and still never come close to threatening the ultra-long term trend toward lower yields. In fact, there’s so much room to weaken that it doesn’t…(read more)
Via:: MBS Day Ahead: Corporate Issuance in Focus Again as ‘Breakout’ Continues