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Mortgage rates and Treasuries slip as oil lifts yields

The report cited MBS prices falling 10 ticks and the 10-year Treasury yield rising 4.2 basis points to 4.706, pushing mortgage rates higher.

Reported · Written up by our desk · Mortgages

Mortgage News Daily reports that oil surged again overnight, keeping pressure on the bond market and, by extension, the Fed rate outlook.

With yields near long term highs, traders were reluctant to “buy the dip” in bond prices, while several factors complicated positioning, including earnings season and expectations for corporate issuance to weigh on Treasury and MBS demand.

The outlet also pointed to MBS-specific underperformance, suggesting it could reflect Treasuries crossing a key level and a repricing of extension risk among MBS-focused investors.

Mortgage News Daily said the net effect was the highest bond yields in over a year, with mortgage rates seeing the same direction, and it cited MBS down 10 ticks, or 0.31, while the 10-year Treasury yield rose 4.2 basis points to 4.706.

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