MBS CLOSE: On The Doorstep Of A Brave “Old” World
February 5, 2010 – 2:16 pmPosted To: MBS Commentary
When something is on a doorstep–any doorstep–there are only two places it can be going: either back inside the metaphorical house, or back to the world outside. Bonds, as represented not by our namesake MBS, but by the 10yr Treasury note, find themselves in just such a dualistic state this evening. They too, are on a doorstep, their location being most perfectly defined neither by the "outside" or the "inside." when we are talking about outside versus inside, it's in reference to the range in which the 10 year treasury was trading between August 21 and December 14, 2009, "the brave old world." These four months represent a unique time in the economic history surrounding the financial crisis. it was a unique time in and of itself in that we were neither rising…(read more)