Yes to the loan that unlocks the joy of home ownership.
Yes to the lending solution that meets every client’s unique needs and wants.
That’s why we dedicate our every resource to serve as your personal guide through the lending process, solving problems, building confidence. Aslan has access to every lending option leading to the purchase or refinance of a residential home loan.
This is more than work for us. It is our unique joy in this life to share our collective skill, creativity, and care to bring you and your family right to where you belong.
What's Up With Today's Big Rally? (Spoiler Alert: Quarter-End Rebalancing)
Wed, Jun 24 2026, 3:52 PM
MBS Recap
What's Up With Today's Big Rally? (Spoiler Alert: Quarter-End Rebalancing)
MBS Recap Matthew Graham | 3:50 PM
What's Up With Today's Big Rally? (Spoiler Alert: Quarter-End Rebalancing)
Stocks went on a tear in Q2 with the S&P up 20% as recently at June 16th. AI-adjacent stocks were up over 50%. Bonds lost ground over the same time. That means the 60/40 stock/bond portfolio targets were thrown way out of whack, at times approaching a 70/30 balance. Gigantic money managers (insurance/pension funds and foreign investment funds) take the last few weeks of a quarter to get that balance back to 60/40. This is accomplished via selling stocks, buying bonds, or both. In today's case it was both, but primarily the "buying bonds" part. If the math is so cut and dried, why can't the market accurately price it in ahead of time (after all, it was being talked about)? Ultimately, rebalancing flows are only a small fraction of trading volume. For instance, the stock selling in early June was viewed as early rebalancing tradeflows. This stuff doesn't adhere to a set schedule, so it's only truly obvious in hindsight. Unfortunately, it doesn't speak to a material shift in bond buying demand going forward--just an accounting adjustment in response to the past.
MBS up nearly 3/8ths and 10yr down 6.6bps at 4.432
11:33 AM
MBS up nearly half a point and 10yr down 9.1bps at 4.407
02:43 PM
MBS up half a point and 10yr down almost 10bps at 4.401
Lock / Float Considerations
6/24/26 -Obvious a huge rally day for bonds, but unfortunately not for any reasons that mean much going forward (i.e. rebalancing between stocks/bonds in response to a volatile quarter). If there is/was any reason for a more risk-tolerant lock/float stance, it would simply be that lender pricing hasn't quite caught up to the bond rally, so there's a small cushion against a potential bounce back tomorrow. If there's another reason, it would be the bullish break below 4.42% in 10yr yields, but strictly speaking, we like to see a 2nd day below a key technical level before counting it as broken.
Yes to the loan that unlocks the joy of home ownership.
Yes to the lending solution that meets every client’s unique needs and wants.
That’s why we dedicate our every resource to serve as your personal guide through the lending process, solving problems, building confidence. Aslan has access to every lending option leading to the purchase or refinance of a residential home loan.
This is more than work for us. It is our unique joy in this life to share our collective skill, creativity, and care to bring you and your family right to where you belong.
