After trending decisively higher during almost every hour since hitting bottom last Friday, stocks and bond yields leveled off today. Perhaps it’s the 3-day weekend (Columbus Day on Monday) or the absence of any significant market-moving data today. Or perhaps this is simply the middle of the road when it comes to either heading back into previous ranges or committing to the more recent breaks lower.
Bond markets’ only noticeable movement came during the opening hours when 10yr yields went as high as 2.138. That coincided with equities markets topping out for the day as well. Both would ultimately return just under yesterday’s latest levels.
Point of order: keep in mind that Tuesday is a roll date for Fannie and Freddie 30yr fixed, and thus the visual drop in prices may be reflected any time between now and then. In other words, Fannie 3.0 prices will look about 10 ticks lower than they would otherwise be looking.