The long-term rate-indicative 10-year Treasury bond leapt close to 20 basis points Friday morning following the release of Friday’s payroll report.
As of 11 a.m. the benchmark yield was at 2.68%, up from the previous day’s close at 2.5%.
According to Seeking Alpha, the move initially led to “panicky selling” amongst mortgage real estate investment trusts, with the sector as a whole shortly after 9:30 a.m. down by about 3.5% on the day.
Mortgage REITs, while acknowledging some concerns for the sector due to
“Obviously, agency mortgages have been under pretty heavy pressure,” Invesco Mortgage Capital’s chief investment officer John Anzalone told attendees at a Morgan Stanley investor conference last month after rates began rising.
“But in terms of positioning, we actually feel pretty good,” he said in a Seeking Alpha transcript of his remarks at the event.
Citing one example, Anzalone said, “One thing people forget is that you are going to see a natural decrease in supply of mortgages [with rates rising] and then on the demand side, demand looks a little bit better.”
