Mortgage Bonds off of thier recent highs

This is a chart from my friends at Mortgage market guide. It is showing that mortgage bonds have had a very steep run up and correspondingly rates have come down. There has been a pullback in this run up and this is to be expected after such large gains in Mortgage Backed Security prices.

What Happened? Bonds were unable to hold onto their best levels and prices have pulled back prompting lenders to issue worsened rate sheets.


Why? After gaining 260 basis points in 5 days, it's no surprise to see Bonds take a breather from their rally.

How to Read this Chart? Think of the thin green line on the far right like a temperature gauge. The top of the line indicates the high point of Bonds today. As you can see, the square/circle icon has slid down, indicating that Bonds have dropped from their high in earlier trading.

©2011 MSS, LLC. All rights reserved.