Posted To: MBS CommentaryConsidering yields have pushed to new long-term highs on 3 out of the past 3 days, it’s safe to say that bonds are “trending” as opposed to flat/sideways. Covid cases are down sharply week-over-week. Econ data continues to be decent enough. And there are no signs that the Fed will forego a tapering announcement on November 3rd. This trend is not your friend. All we can do is stay defensive and wait for clear confirmation that bonds are turning a corner. For now, we’re lucky that yields haven’t attempted to break up and out of the rising rate channel we’ve been tracking. It’s important, and potentially interesting to clarify what “rising rates” means. The main point of distinction is between nominal yields and “real” yields (those that have been…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.