Posted To: MBS Commentary
It’s been a strange week for domestic bond markets so far. Just 2 short days ago, bonds were rallying with a seeming disregard for negative cues from related markets and data. Now, as of yesterday, the opposite is true as sellers are clearly in control despite what would normally be positive external cues (lower stocks, stable European bond markets, and yesterday’s horrible econ data). While this morning’s Jobless Claims data was slightly stronger than expected, it was already made clear yesterday that bonds aren’t trading data at the moment. Claims data was no exception as there was no detectable trading reaction in the first 10 minutes. Bond traders simply don’t sit on their hands and “think it over” for that long. 10 seconds would be a long time. 10 minutes…(read more)
Via:: MBS MID-DAY: Bond Buyers on Strike for 2nd Straight Day
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