Rates "improve" this week as compared to last week.
The same rate today costs about .375 LESS than it did last Friday.
1. Fed Speech - Accelerates the Bond taper + predicts 3 rate hikes in 2022! (is that bad?)
2. Covid Variant unleashed - definitely making traders behave defensively (GOOD FOR LOWER RATES)
I was thinking that the Fed speech this week was going to spook the market, and it did very briefly. Now I think that bond traders are feeling much more secure knowing that the FED is going to be aggressively fighting inflation. Inflation makes bonds immediately less valuable, and whenever we see inflation reports come in hot, bond traders tend to sell off right away.