What a difference a few weeks of war makes! Wednesday’s poor rate day continued yesterday, and Thursday was even worse. Rate sheets started the day higher, and reprices worsened as bonds sold off throughout the day.
Today brings some early gains for bonds, but it still only washes out about half of yesterday’s losses.
Bonds are choppy and anything in the headlines about the Middle East that affects oil prices will cause bonds and rate sheets to react.
This morning was a feel-good moment, but next week could very well see things get worse.
This week, the average rate sheet moved about 0.25% higher. Rates are unlikely to drop further over the next couple of weeks unless the conflict in Iran ends completely and oil prices begin to drop again. Next week’s Fed Meeting is a non-factor, as rates will continue to revolve around oil prices and the Middle East conflict.