Bearish Breakout For All The Normal Reasons

Bearish Breakout For All The Normal Reasons

Welcome to post-Iran-War 2026. The only real relief for bonds since then was seen in June when there was hope that the war was over or at least winding down. Gas prices are back to multi-year highs. Inflation fears are back at the forefront. Even the ECB is flagging rate hike risks that could play out by the end of the year. This morning is seeing more of the same in terms of another pop in oil prices push yields higher overnight followed by additional selling in early domestic trading. Technicals could be adding emphasis given the breakout of various support levels. The ECB announcement didn't help, but Treasuries are underperforming EU bonds, so it doesn't deserve credit for any additional selling momentum. At the risk of oversimplifying, nothing tells the story better than 2yr Treasuries right now. They convey a slow-motion train wreck playing out since March and while today may be just a bit more brisk than average, it's just another day in post-Iran-war 2026.

Latest Video Analysis

Just Another Reasonably Bad Day For Bonds

MBS & Treasury Markets
UMBS 5.5
99.06
-0.27 
10YR TREASURY
4.703
+0.040 
7/23/2026 9:54AM EST
Welcome to post-Iran-War 2026. The only real relief for bonds since then was seen in June when there was hope that the war was over or at least winding down. Gas prices are back to multi-year highs. Inflation fears are back at the forefront. Even the ECB is flagging rate hike risks that could play out by the end of the year. This morning is seeing more of the same in terms of another pop in oil prices push yields higher overnight followed by additional selling in early d...   READ MORE
Today's Mortgage Rates
30YR Fixed
6.85%
+0.08% 
15YR Fixed
6.29%
+0.06% 
7/23/2026
We have bad news and slightly less bad news. Starting with the latter, today's mortgage rates are only marginally higher than they were yesterday with the average top tier 30yr fixed rate up 0.02%. The bad news is that this takes our rate index to 6.77%--the highest level since July 28th, 2025.  Mortgage rates are driven by the bond market and bonds remain under pressure from a renewed surge in fuel prices. Specifically, higher fuel prices and additional uncertainty ...   READ MORE
Economic Calendar
Time Event Period Actual Forecast Prior
Thursday, Jul 23
8:30AM Jul/18 Jobless Claims (k) Jul/18 187K 212K 208K
8:30AM Jul/11 Continued Claims (k) Jul/11 1796K 1805K
1:00PM 10-yr Note Auction (bl) 21
Friday, Jul 24
8:00AM Jun Building Permits (ml) Jun 1.367M 1.41M
9:45AM Jul S&P Global Services PMI Jul 51.5 51.2
9:45AM Jul S&P Global Manuf. PMI Jul 54.3 53.9
9:45AM Jul S&P Global Composite PMI Jul 51.9
10:00AM Jun New Home Sales (%) (%) Jun -7.3%
10:00AM Jun New Home Sales (ml) Jun 0.61M 0.58M