Posted To: MBS Commentary
Bonds sold off again. Don’t look so surprised. Yes, ADP data was weaker than expected, but it didn’t matter due to pervasively weaker momentum driven by the ongoing European bond market rout and a perpetually gluttonous buffet of corporate bond issuance. If all that made sense to you, you probably don’t need to read any more. For those with furrowed brows, we’ll dive a bit deeper. As you’re likely aware, core European debt (especially Germany’s) has been in the throes of a brutal sell-off since late April. 10yr German Bunds rose 10bps today (which is a huge move in Bunds) from .51 to .61. To bond optimists, this is nothing more than the first major growing pain associated with the QE process. US bonds had the same sort of episodes when investors collectively ‘freaked…(read more)
Via:: MBS RECAP: And Now For Something Completely The Same
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