Bad Vibes Persist For Bonds and Rates; Home Prices End 2020 Up 9%; Refis Surge

Bad Vibes Persist For Bonds and Rates; Home Prices End 2020 Up 9%; Refis Surge

Bad Vibes Persist For Bonds and Rates Bonds began the day in weaker shape, thus keeping the threat of an ongoing correction alive. After a fairly sideways morning, MBS dropped more sharply in the afternoon. Treasuries maintained a gentle, but clear selling trend throughout the day. Moreover, yields easily broke up and over the 1.125% pivot point without a second though. Taken together, this is bad news for rates as it easily reinforces the negative short term trend we've been following. In turn, that negative short-term trend is part of a broader negative trend in the bigger picture. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm ADP Employment 174 vs 49 f'cast, -78 prev ISM Services PMI 58.7 vs 56.8, highest in 2 yrs ISM Employment Index highest since Feb 2020 Market Movement Recap 08