Posted To: MBS Commentary
Before the Fed wrapped up QE purchases last year, the amount of movement we saw in the first few minutes of the day would have bordered on catastrophic. This week, it’s just another modest morning correction. The really crazy thing is that this morning is nothing compared to the overnight session, and from there, the overnight session Treasuries is nothing compared to that of German Bunds. And with that, we finally come to the star of the show . German Bunds have been in the throes of an epic sell-off. It’s been far more abrupt than the mid-2013 taper tantrum sell-off in the US (read that again if you need to, because it’s very telling when you think about how crazy mid-2013 was). The past 5 sessions before today were the biggest culprit, but today’s played an important role…(read more)
Via:: MBS RECAP: A Nice, Calm Rally Day
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