Bond prices hit their best levels of the year — but don’t get too comfortable.
In this week’s Master the Markets Bill Bodnar explains why this rally might not last. With oil dipping into the $50s and geopolitical tensions easing, inflationary pressure is easing — helping mortgage bonds rally. Add in the potential pause in quantitative tightening due to regional bank stress, and it’s clear why the 10-year is flirting with 4.00%.
But here’s the catch: this week is packed. We’ve got major Treasury auctions and the release of September's delayed CPI report. How those auctions perform will steer rate direction. And while the Fed is in their pre-meeting blackout period, the markets will do the talking.
This is no time for complacency — especially with your pipeline. Bill reminds originators that while the trend is your friend, it’s also being tested.
