MBS RECAP: Bonds Manage to Hold Modest Gains

Posted To: MBS Commentary

For the third time in the post-election sell-off, bond markets managed modest gains day-over-day. Much like the last 2 times (last Tue and Wed), closing levels kept us in significantly weaker territory relative to a few weeks ago. Rather, these days where 10yr yields fall 3.4bps can hardly be enjoyed when yields moved “down” to 2.314%. In other words, the bigger takeaway from today is that bonds remain in weaker territory with the day-over-day improvement purely a factor of the big, recent losses. While there were no major economic reports today, several events attempted to move markets. Early in the day, Fed Vice Chair Fischer essentially endorsed Trump’s apparent infrastructure spending plans by saying that fiscal policies could “increase the potential of the economy and…(read more)

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