MBS Week Ahead: Still Anyone’s Game as Covid Concerns Continue

Just when you thought rates were bouncing higher after hitting 6 month lows, the new week begins with bonds re-staking a claim to the recent, stronger range in July/Aug. 10yr yields are back in the 1.2’s, and MBS are at the best levels in more than a week.

Most everyone is tired of pandemic-related news, but it continues to be the key source of motivation for the economy and the bond market whether directly or indirectly.  The Fed’s rate-friendly policy stance is another manifestation of covid’s economic impacts.  And just when the Fed is finally getting close to dialing back…