The Week Ahead: Absence of Data Makes Things Interesting

Posted To: MBS CommentaryLast week was unpleasant for fans of low interest rates. We moved to multi month highs in mortgage and Treasury rates, spending the most time at " 2+ month highs " since mid-March 2012. The ominous prospect is this: in hindsight, March 2012 was a somewhat anomalous pop higher in rates that happened very quickly and was "over" in just over 3 weeks. Contrast that to the current iteration of bond market weakness where the initial pop higher was much more methodical, but significantly more persistent. The current s ell-off dr aws on a wide variety of motivations--Fiscal Cliff mini-deal, FOMC Minutes, 2x "good" NFP reports, ECB LTRO repayments, debt ceiling extension, and other marginally "less bad" economic reports. Whether or not this crop of market movers is either justified or destined to be...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/mortgage_rates/blog/294179.aspx @ uwad.com