MBS Prices Spike as 10-Year Treasury Hits Four-Year Low: A Correction Coming, Eventually, for Bond Prices?
February 12, 2016
A long-expected correction in MBS prices was put on hold this week as interest rates took another dive and concerns continued to mount about China’s stagnant economy and weakening oil prices. As Inside MBS & ABS went to press late this week, the yield on the benchmark 10-year Treasury was at 1.61 percent, the lowest it’s been in roughly four years. The volatility in the market was sparking...