Posted To: MBS Commentary
A frequent topic of interest over the past few years–and especially recently–is the trickle down effect from European bond markets to mortgage rates. Treasuries typically react more to whatever is going on in Europe, and MBS are another degree removed. More often than not, Europe has been leading the charge toward lower rates, which means MBS and mortgage rates have seen the least benefit of the three. But those tables have turned for the time being, at least for the past two days. During that time, European bond markets have weakened, and domestic bond markets have been doing a better job of holding their ground. On both days, a sharp move higher in European yields has translated into a timid move higher in US yields. In today’s example, it was just enough to take Treasuries into weaker…(read more)
Via:: MBS MID-DAY: Another Calm Morning; MBS Outperforming Treasuries
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