Mortgage rates have been struggling for direction, caught between the hope of peak rates and the fear of persistent inflation.
After last year's bond market massacre, bond traders want to believe the worst is over. They know that historically speaking, 3.34% is a juicy yield on a 5-year risk-free bond. (The average over the last 20-years is 2.27%.)
Partly for those reasons, many investors have a conscious or subconscious desire to be long bonds, believing rates have topped out.
But they're also keeping their finger on the <Sell> button, knowing that: