BE A COMPETITOR! THE BEST!
Advise Your Clients: Locking, 3% 10-year yield appears bound for test
Current Price of FNMA 4% Bond: $102.62, -9bp
Despite Stocks entering correction territory, which means a 10%+ decline
from the highs, Bond yields are hitting highs last seen in early 2014.
This morning, Mortgage Bonds are lower again, stepping lower on the
grueling down escalator.
Stocks are opening higher after the Dow lost 1,000 points yesterday. The
specter of higher interest rates, inflation pressures, rising budget deficits,
and a very overbought and complacent Stock market set the stage for this
incredible market volatility and fast slide lower.
The government briefly shutdown overnight but has reopened after the
House approved a spending bill that will fund the government until March
23. President Trump will sign the bill into law today.
The 10-year yield is at 2.86%, a four-year high and appears destined to test
psychological resistance at 3%.
Looking at the fundamentals (news items) and technicals (volatility and
down escalator), we see no reason to float right now.
Have a great weekend!
Note: The Monthly Bond Rollover will take place this Monday.