The UST10YR yield has progressively moved higher and higher throughout the day and is currently testing its 3.90% psychological support level. We are crossing our fingers that this will be the stopping point for selling today...but not holding our breath.
The continued bearish bias on the yield curve has contributed to the momentum of the FN 4.5's downward trend channel. Yields spreads are at their widest levels of the day..currently almost +100bps/10yr TSY. Weakness persists nontheless...
REPRICES FOR THE WORSE ARE WARRANTED!!!
(not that many have active loans in the pipeline anyway) Right?
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