Posted To: MBS Commentary
Up until yesterday, everything since NFP had been fairly boring in terms of bond market activity. While there were some instances of moderate movement, they were generally tradeflow-related as opposed to the old fashioned moves that are clearly connected to a major event or headline. Even last week’s FOMC Minutes let us down in that regard. Then along comes yesterday’s Retail Sales data and things change. This was interesting not only because it was something new in terms of market priorities, but it was made all the more interesting by the fact that the data didn’t really seem like it should have motivated quite such a movement at first glance. Indeed, there are few ways to justify a 6bp rally in 10yr yields on a Retail Sales report that comes in at +0.9 vs +1.0. The way I chose…(read more)
Via:: MBS Day Ahead: Bonds Acting Like They Want More Data, And They’ll Get It
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