Posted To: MBS Commentary
The trading day started out timidly enough, but with a bit of an ominous tone . This had to do with the fact the German Bunds made new all-time lows yet again, while US Treasuries did almost nothing to follow. The first two hours of the domestic session were total duds in terms of movement. In another ominous move, trading levels were having nothing to do with any sort of rally that would take them back through yesterday’s best levels. When rates know they won’t go any lower, there’s only one other direction to go . They went higher after the 10am Philly Fed data gave traders their first decidedly positive data points of the week to hide behind. It was almost as if they were just looking for an excuse to bounce higher. At least that’s how it would have looked if we didn’t…(read more)
Via:: MBS RECAP: Mini Roller-Coaster on Corporate Tradeflows and Fed Speak
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