Good Wednesday AM (still the best day of the week),
Bonds are once again under pressure. The ten-year yield is retesting the 4.11 level again. If we can hold that test, we could see a bit of a relief rally, but it likely will not be anything worth getting excited about. Unfortunately, Mortgage Bonds are taking a beating as well and testing the last support point. If we fall through here, it just gets uglier. Later today, we get the Fed Beige Book report, this could cause some ripples in the market, but historically the impact has been relatively small. There was a 20-yr bond auction which not surprisingly, did not go well. The best news is that with each passing day, we are one day closer to the other side of this.
Report out today showed that California home sales plunged 30% in September from a year earlier
Please remain safe and stay healthy, make today great!