MBS RECAP: Bond Market Meltdown Resumes; Big and Scary

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Posted To: MBS Commentary

As I check my mental inventory of recent headline titles, I find it interesting and scary that the only other times that compare historically have been the BIG moves like the mid-2013 taper tantrum. The difference is that the taper tantrum was one big, logical thing. Markets came to terms with what was going on in May and June, and quickly set about pricing Fed bond buying out of the equation. It was fairly tidy in retrospect. The current move is more of a perfect storm of disparate factors. At the heart of that storm , clearly, is an ongoing correction in European bond markets. Rates in Europe had moved relentlessly lower throughout 2014 and the first part of 2015 as investors accounted for the likely effects of ECB Quantitative Easing. For the past three weeks, European rates have been spiking...(read more)

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Source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/471160.aspx

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