Posted To: MBS CommentarySolid Afternoon Bounce, But Context Matters There’s surely some great analogy to be made about perspective (filed under the “everything’s relative” category). Bonds rallied quite nicely today with 10yr yields have their best domestic trading session since before the last Fed announcement. MBS didn’t do quite as well, but we wouldn’t expect them to given the shape of the yield curve (shorter duration bonds not doing as well as longer-duration bonds). But (wait for it…) everything’s relative! 10yr yields at 1.64% are only good news compared to the past 2 days. If you missed those 2 days, then today isn’t so much a “nice rally” as a confirmation that rates are at their highest levels since April. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.