I don't expect the market to gain momentum in either direction until it gains new clarity about the possibility of a May rate hike. The overall trend in housing demand remains relatively weaker compared with 2005. |
I don't think this sheds a whole lot of new light on where the Fed is headed. Over the next several months, we retain our bearish bias and expect yields to grind higher. |
It took off OK, but then it got snuffed out. |
The big part of the move today is driven by the view that the Fed will likely go more than what the market had thought. |
The market had been on a bearish trend. This (data) does little to change any views. |
The new contract would be more useful for hedging purposes. |
The squeeze has eased considerably. We knew the passage was coming. |
This confirms our expectations that rates should be headed higher here as people are pricing in a more hawkish Fed. |
You are getting a relief bounce. |