Posted To: MBS Commentary
It began as just another day in a 12-day winning streak for bond markets that had seen 10yr yields recover 40bps peak to trough. Actually, “just another day” doesn’t really apply to that scenario. We’re lucky to see it happen a few times a year. That fact alone is enough to justify the modest 5bps pull-back we saw today (or 3/8ths of a point in terms of MBS). Still, it s eemed to come out of nowhere in the context of the recent trend. But there are a few ways to make sense of it beyond the opening paragraph above. First of all, any time S&P futures fall 30 points over the course of the session, something is up. In this case, the stock weakness not only coincided with bond market weakness in a general sense, but they also kicked in to gear around the same time of day. We’ve…(read more)
Via:: MBS RECAP: Bond Markets Relatively Blindsided by Snowball Sell-Off
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