Posted To: MBS Commentary

Day's like today can't hep but give the average market watcher a bit of a sinking feeling . Was that it? Was yesterday's visit to the lowest yields since 20XX a sign of the final throes of market capitulation? Did that wash out all the trades that were piling on to the insane momentum and are we now destined to move resolutely back in the other direction? At the risk of bearing bad news, that can't ever be ruled out . I would personally have an easier time ruling it out if stocks and oil prices didn't simultaneously experience a double bottom in line with late January lows. As long as it looks like they're contemplating holding their ground there, bond markets will remain at risk for further correction. The potential saving grace is that much of today's bounce could...(read more)

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