Posted To: MBS Commentary
The last 5 days have been ugly for bond markets–not quite as the beginning of February, but this time around, we aren’t bouncing off multi-year lows. This 5-day route tacks on to the end of what had already been a flat-to-slightly-weaker trend throughout April. It was a carefully chosen directional move that followed rampant uncertainty as opposed to February’s sell-off which was a reaction to an apparent bottoming out in yields combined with a quick increase in Fed rate hike expectations. German Bunds continue to be in the drivers’ seat. They’ve weakened a whopping 40bps in just under 2 weeks. US 10’s haven’t even lost half that much. This is by far and away the biggest correction to the yearlong Bund rally that began early last year. In general, if it continues, Treasuries…(read more)
Via:: MBS RECAP: Widespread Negative Reprices as Bond Slide Continues
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