Bonds are in the midst of a full-blown capitulation move with 10yr yields currently up over 16bps at 3.32%. MBS are down roughly a full point. These aren’t the biggest losses we’ve ever seen in a day, but they’re extraordinarily big losses to be experiencing at the top of trend that has already covered as much ground as the one seen so far in 2022.
Long story short, the market is freaked out about what Friday means for the policy outlook. Wednesday continues to be one of the biggest flashpoints for bond volatility we’ve seen in a long time.
This is a graph from Mortgage News Daily (MND) showing 30-year fixed rates from three sources (MND, MBA, Freddie Mac) over the last year.