MBS RECAP: Bonds Surge to Weakest Levels since 2014

By Matthew Graham

Posted To: MBS Commentary

10yr yields hit the highest levels in more than 4 years this afternoon as bigger-picture selling pressure looks to be taking the reigns back from the Springtime consolidation that helped rates hold steady-to-slightly lower in March. There are no big, obvious reasons for the sudden spike in rates. We’re left to cobble together a narrative from boring, esoteric stuff like an “imbalance in trading positions,” anxiety over the data, earnings, and bond supply next week, and the end of a few days of extra help from tax deadline retirement account funding. Or, if you’d like to go with fewer words , it’s no less valid to say that technicals and momentum are the culprits. In other words, bonds were in a consolidation trend. They tested the ceiling, broke the ceiling, and have been…(read more)

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MBS RECAP: Bonds Surge to Weakest Levels since 2014

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