MBS RECAP: More Warning Shots From Bonds

By Matthew Graham Posted To: MBS Commentary We’ve been increasingly wary about a potential break of the recent consolidation/rally trend -the one that saw yields move sideways to slightly stronger from late Feb through early April. Yields tiptoed to the top of that range as of Tuesday and then fired a more forceful warning shot.

By Isobel Kennedy NEW YORK, (MNI) – It is not an exaggeration to say that the Federal Reserve’s actions last week have created a new ball game for the financial markets and the obscure, hard.

Investor Syndicate Fires Warning Shot Across Trustee Bows. Posted on July 24, 2010 by Isaac Gradman. (MBS) holdings, which would account for over one-third of the $1.5 trillion private-label mbs market.. 50% in more than 900 deals, and 66% of the bonds in more than 450 deals..

Bond Market Smells Inflation, Begins to React | Wolf Street – Bond prices fall when yields rise. And the selloff in three-year maturities and below shows that the short end of the bond market is reacting to the Fed’s rate-hike environment. The moves in the 10-year yield, however, defied the Fed in much of 2017, with the yield actually dropping.

Mortgage Rates Rise At Quickest Pace In A Week Mortgage rates had a serious bump on the journey towards lower levels today, with national averages rising at the fastest pace so far this year. Fortunately, even with this quick rise, the day still ended at the sixth best day for mortgage rates in the past 21 months.MBS Day Ahead: Positive/Negative Potential Outcomes; Why This Time is Different At this time, all participants are. the FDA and the plan would be to go ahead with the Phase 3 registrational study, there’s always a chance if the Phase 2 comes out amazingly positive, that we can.Low rates forever? Or are the experts wrong – again?

MBS RECAP: Worst Day For Bonds in Nearly 2 Years – Traders guessed (correctly) that the Trump administration would like to spend more money relative to incoming revenue. That would involve Treasury borrowing and Treasury borrowing creates higher rates.

For instance, in the chart below, the big drop at the beginning of 2015 was due to the onset of the European Central Bank’s bond buying program (more bond-buying = lower rates). The big spike in late 2016 was due to bond traders fearing increased Treasury issuance (more supply = more to sell = higher rates) after the election.

MBS RECAP: More Warning Shots From Bonds Mortgage Rates Steady at 4-Year Highs Despite warning shots; mortgage rates Steady at 4-Year Highs Despite Warning Shots. More issuance (i.e. more "supply") creates lower bond prices and higher rates (prices and rates move inversely).. mbs RECAP: Tame, Abbreviated Trading Session.

Yields tiptoed to the top of that range as of Tuesday and then fired a more forceful warning shot with a bigger breakout yesterday.. mbs recap: stronger Selling and lighter volume raise Doubts. 2015. MBS MID-DAY: Bonds Taking a Break from Volatility, Especially MBS. Posted To: MBS.