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Bond rally holds steady as yields stay near late-July highs

After last week’s selloff, the 10-year yield fell 4.6 basis points to 4.689% while MBS gained 9 ticks.

Reported · Written up by our desk · Economy

Bonds extended a rally on Monday that pushed yields higher earlier in the week, but price action stayed exceptionally flat, according to Mortgage News Daily.

The outlet said Monday’s yields matched the long-term highs seen on July 23, and it noted the rally did not fully erase weakness from Friday.

Mortgage News Daily attributed Monday’s improvement in part to a fairly substantial drop in oil prices that came amid renewed optimism around Iran war de-escalation, while it said economic data did not have lasting impact that day.

The report also pointed to Friday’s jobs report as the main macro catalyst, citing stronger overnight sentiment tied to war-related de-escalation and lower fuel prices, with MBS up 9 ticks, or 0.28, and the 10-year yield down 4.6 bps to 4.689%.

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