Posted To: MBS Commentary
Move over Pontiac. Bond market volatility is driving excitement. While that may be one of the worst s entences I’ve ever written, it has the redeeming quality of being true. Things are really getting interesting for the long and short term fate of bond market momentum. For the past two mornings, I’ve been suggesting that a corrective bounce was approaching, regardless of the economic data. We didn’t get it yesterday, and that made it increasingly likely to happen today or tomorrow. (Hint: it’s happening today). The German Bund rout went out with a bang in the overnight session with 10yr Bunds skyrocketing to 0.80. It was barely 2 weeks ago when they were at 0.05! So yes… Bunds are the most meaningful ingredient in the recent Treasury weakness because they’re yelling the…(read more)
Via:: MBS MID-DAY: The Bounce Finally Arrives, Making Tomorrow All the More Exciting
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