MBS RECAP: Ugly Day to End Ugly Week For Bond Markets

Actually, the last 2 weeks have been ugly for bond markets.  It’s almost as if a switch was flipped as soon as September began.

Just when yesterday looked like it might offer the first significant reprieve, boom… more selling today.  Once again, economic data didn’t matter and bond markets showed little regard for technical boundaries.  In terms of 10yr yields, we’re now officially testing a break of the long term downtrend of 2014.  This is the chart that showed that break from today’s mid-day commentary:

Whether it’s the herd mentality or reality, markets are focused on next week’s FOMC Announcement as either the justification for this bond market move, or a source of relief.  At this point, there’s enough of a herd to be sure that the Fed will have a big impact either way on Wednesday.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/390013.aspx

Leave a Reply

WP2Social Auto Publish Powered By : XYZScripts.com
Bunk Beds