MBS RECAP: Scariest Week Since 2013 for Bond Markets

By June 5, 2015Latest Insights

Posted To: MBS Commentary

If we went back to the beginning of June and asked ourselves "where do we think 10yr yields would be on Friday if Draghi doesn't commit to maintaining QE and if NFP beats by more than 50k?" somewhere around current levels would be a very good guess. At the time, yields were around 2.10. Now they're nearly 30bps higher. Feels about right… There's some subtext here, but I'll just state it explicitly: this afternoon's bounce back doesn't mean much to me. It's more a function of Europe and the intensity of the pain already experienced this week. If we hadn't freaked out quite so much earlier this week, today would have been the massive freak out. Conversely, if we didn't gain ground yesterday, today might have been just another red day. Here's…(read more)

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aggbug MBS RECAP: Scariest Week Since 2013 for Bond Markets
Source: Mortgage News Daily