The Smart Team of NOVA® Home Loans

MBS RECAP: First Real Attempt to Break 2017's Range

Posted To: MBS Commentary

Friday was exciting for a short while. Following the weaker-than-expected NFP, 10yr yields briefly broke below 2.27–emphasis on "brief." Friday quickly began looking like a head-fake as Monday opened with bonds in weaker territory. Over the past 2 days, however, the big rally potential has returned. Yesterday was " nice ," but technically not quite enough to say that there was a legitimate attempt to break below 2017's range. That changed today as 10yr yields cruised all the way down to 2.239 this afternoon. The motivation was the same for both yesterday and today's bond rallies: political headlines. Yesterday was more geopolitical in nature with North Korea threatening a nuclear strike on South Korea and the US. The White House response was the market mover, however…(read more)

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Source: Mortgage News Daily

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