MBS Day Ahead: Bond Markets Ready for Something New After Today’s Jobs Report

From the moment yields began drifting higher following the mid-October rally, absolutely nothing new has happened for bond markets. Trading levels have gotten progressively more negative in frustratingly non-threatening baby steps. The frustration sets in when you see those baby steps added up to a full-grown sell-off of 40bps in 10yr yields, or about a quarter of a point in terms of mortgage rates.

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