Let's Talk About Whether It's Time To Talk About Some Resilience
Let's Talk About Whether It's Time To Talk About Some Resilience
Abstract
Let's Talk About Whether It's Time To Talk About Some Resilience A large, rapid rate spike is frequently one of the best early indicators for at least some small token of a corrective rally. Even in the early 2022 rate spike, there were several opportunities for passengers to disembark on the way up-5 to 7 days here and there where rates were sideways to slightly lower. In the current case, rates haven't strung together more than 3 days of improvement since July. Treasuries have mostly leveled off since then, but only in the long end. MBS are underperforming along with the shorter end of the yield curve with 5.0 coupons down a quarter point. 10yr yields are down 2.7bps at 3.683. MBS are down just over an eighth of a point, but 10yr yields are still near their best levels of the day, down 2.3bps at 3.687..
