Mortgage backed securities are trading flat on the day down just 3bps this morning. Bonds have been in a downward trend for the last 2 weeks and rates have crept up .75% higher nearing 7.00%.
The recent pressure on bonds are due to the pressure the heightened inflation concerns of the market. The Fed meets next week and bonds traders are looking for short-term rates to be increased which will be great for long-term bond rates....however don't expect much more than shift in the policy statement.
Floating for now....
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