American Homeowners are Adding Fuel to Bond Market Sell-Off
Bloomberg, Feb. 25, 2021–Christopher Maloney, Liz McCormick
There comes a point in any big selloff in Treasury bonds when the move becomes so pronounced that it starts to feed on itself. Increases in yields force a crucial group of investors to sell Treasuries, which in turn leads to further increases in yields. The forced sellers are investors in the $7 trillion mortgage-backed bond market.
https://www.bloomberg.com/news/articles/2021-02-25/convexity-hedging-haunts-markets-already-reeling-from-bond-rout?srnd=premium