The 10-year Treasury yield and Bankrate’s 30-year fixed-rate mortgage rate index has been steadily rising as The Federal Reserve has begun taking their foot off the monetary gas pedal. AKA, starting to unwind their balance sheet.
The Fed took a breather last Thursday and took a pause from their typical rotation of selling Treasuries one week and Agency MBS the next week. But will they be tempted to opt for “more cowbell” this week if equities have another turbulent week?
10-year T-Note volatility (TYVIX) has really ramped up in the last two weeks.