Posted To: MBS Commentary
Bond markets are having an exceptionally uneventful morning, trading in a narrow, slightly stronger range for the most part. This was the case right from the start of the overnight session, and continued to be the case despite rising German Bund yields. The extent to which the normal level of correlation has broken down is something we usually only see when Bunds are rallying better than Treasuries. For instance, Treasuries didn’t improve too much when Bunds were rocketing to new all time lows as the ECB began buying in early March, but they weakened at a similar pace when that move was over. In addition to the rising Bund yields, stocks have also been moving higher. The sharper move occurred right after the opening bell, and that’s the only time we’ve really seen bonds make any…(read more)
Via:: MBS MID-DAY: Slow Morning for Bonds, but Holding Ground Despite External Pressures
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