13 Jan MBS Back in the Green
Good morning everyone!
The stock market is up this morning as the record for daily vaccines was broken in the US on Monday. 1.25M vaccines were given, a huge day preceded by a seemingly slow initial rollout. As the rollout continues to ramp up, it will light a fire under the stock market and put upward pressure on mortgage rates.
Mortgage Backed Securities are finally in the green after about 2 weeks of consistent losses and are currently sitting above the 200 DMA that they broke under yesterday. This jump with a ton of room to the upside paired with the fact that 10 Year Treasuries hit a ceiling and started a downward trend yesterday create a good situation for MBS to make up some of the losses they have recently seen. Because there is still so much volatility in the market regarding the upcoming transfer of presidential power, we continue to hold a locking bias unless you are able to closely watch the market.