Posted To: MBS CommentaryMost of April had been bad for bonds. It was like the beginning of yet another storm in a series that had battered the fixed-income coastline since last September (when the tax bill was “leaked”). Just after yields crested 4-year highs exactly 2 weeks ago today, we saw a quick retreat back under 3% and sideways-to-slightly-stronger performance last week. Throughout that week, we hoped to see 2.95% definitively broken as a floor. While that looked increasingly possible as the week progressed, Friday afternoon’s weakness called the break into question. Now this week’s trading is letting us know that every bit of our reluctance to believe in a broader rally was justified. Although Monday was a dud in terms of volume and volatility, yesterday took yields up and over 2.97%. Now…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
