\n Full Reversal And Then Some
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\n Wed, May 20 2026, 4:19 PM
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Full Reversal And Then Some<\/p>\n
Bonds more than made up from Tuesday’s rout with a massive rally on Wednesday. Unlike Tuesday’s move, which was driven by bond-market-specific selling pressure on the part of one account’s massive liquidations, Wednesday’s rally was broad-based and driven by war-related headlines. Specifically, newswires suggested the U.S. and Iran are now very close to agreeing on a plan to end the war. The market isn’t just hearing “wolf!” It’s pretty sure it’s seeing an actual wolf on the horizon. This is important and ongoing proof of concept regarding the prospect of additional improvement in the event speculation becomes reality. Conversely, it’s also a reminder that things can change quickly if the peace narrative deteriorates in coming days.<\/p>\n
08:49 AM<\/p>\n
moderately stronger overnight. MBS up an eighth and 10yr down 2.1bps at 4.646<\/p>\n
10:27 AM<\/p>\n
gaining some ground on Pakistan headlines (potential final draft of peace terms tomorrow). 10yr down 3.7bps at 4.629 and MBS up just over a quarter point.<\/p>\n
01:18 PM<\/p>\n
Near best levels. MBS up 3\/8ths and 10yr down 8.8bps at 4.58<\/p>\n
02:53 PM<\/p>\n
MBS up 5\/8ths and 10yr down 10bps at 4.567<\/p>\n