Posted To: MBS Commentary
Time for bond markets to start thinking even more seriously than they already are. 2014 and Jan 2015 were great. No complaints! We rode the epic wave of European weakness, impending QE, low domestic inflation, and Greek drama to levels that we didn’t think we’d see at the end of 2013. But things got complicated in February and continue to be complicated in March. Bond markets have been rotating between several big-picture trading cues, and they’ve seldom been in agreement. That’s evident in the divergence of the long and short end of the the Treasury yield curve. While 10’s and 30’s have rallied in the longer-term trend, 2’s have done the opposite. 5’s have been right in the middle. When we talk about something like US 10’s being on guard against a bounce…(read more)
Via:: MBS Day Ahead: Return to Thin Calendar May Stir Thoughts of Next Week’s FOMC
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