The Smart Team of NOVA® Home Loans

MBS RECAP: Rally Extends Thanks to Silence on the Hill

Posted To: MBS Commentary

Today could have gone two ways. We could have come to find out that Friday's "delay" in the vote on the healthcare bill was an actual delay, or we could have quickly seen that the bill was dead (at least in its current form, and at least for now). With nary a headline or newswire covering the healthcare bill as something that still exists in the realm of near-term possibility, markets quickly decided that last week's delay was merely politicians' way of saying the bill was dead . To whatever extent a postponement left hope alive for progress on fiscal policy, bonds had good reason to be cautious . To whatever extent the bill was viewed as dead, bonds had good reason to press on with the rally . And so they did. During the overnight session, 10yr yields were as low as 2…(read more)

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Source: Mortgage News Daily

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