Posted To: MBS Commentary
While it’s never good or safe to dismiss market movement as less legitimate due to a lack of volume, it’s worth keeping in mind that the movement is more flimsily-constructed. That’s an important distinction. The risk is that market-watchers assume a low volume move is “wrong” simply because it’s low volume (unsafe assumption!). It could certainly be the case that negativity continues when volume comes back. In short, a low volume move means the jury is still out. In the current case where we find ourselves coming back from a strong NFP move heading into the weekend to a complete reversal on Monday, we’re actually dealing with TWO low volume moves –Friday and yesterday. Unsurprisingly, neither move did anything to challenge the trends we’ve been following…(read more)
Via:: MBS Day Ahead: Back to Business For Global Markets; Bond Weakness In Context
Share this article
