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Oil-driven volatility lifts bond yields and moves MBS lower
A pickup in oil prices coincided with mid-day pressure in bonds amid active corporate debt issuance, while mortgage-backed securities fell 7 ticks.
Oil prices have been moving in step with news about the Iran war, shifting direction on multiple Mondays, with a recent low on Wednesday followed by gains afterward, according to Mortgage News Daily.
The outlet said the latest oil-led rise accelerated enough to pull bond yields higher, and it also pointed to mid-day pressure tied to active corporate debt issuance.
In market snapshots, Mortgage News Daily reported the 10-year yield was up 4.1 basis points to 4.688%, while MBS were down 7 ticks, or 0.22%.
The outlet added that both oil prices and bond yields have returned to levels seen during Tuesday's pre-market hours, and it described bonds as weakening again during the session.