Mortgage bonds were impacted by comments from Fed Governor Bowman, a weak 30-year bond auction, and remarks from Fed Chair Powell. However, we managed to recover.

Bowman continues to advocate for more hikes, despite being a lawyer rather than an economist. She highlights higher energy costs (down 17% in the last month), questionable job and wage growth.

The 30-year bond Auction did not meet expectations. China reported a system hack, preventing them from buying bonds, and there has been a noticeable decrease in foreign demand. In 2010, 50% of Treasuries were foreign-owned, whereas now it stands at 30%.

Powell’s recent statements caused a spike, and he appeared more hawkish than in his previous statement.

The good news is the market and rates are holding steady.