Posted To: MBS Commentary
Yesterday morning, we were hoping that bond markets would find near-term technical support from Friday’s weakest levels. Today, we’re hoping for a different kind of support–also seen yesterday. The technical bounce at 2.33 in 10yr yields was made possible by a strong rally in European bond markets and further stoked by the flames of the steepest day of stock losses in over a month. With few other considerations on the calendar, bond markets should remain receptive to these exterior inputs. When it comes to the stock/bond relationship, keep in mind that we’ve recently had a fair amount of distortion due the heavy slate of corporate bond issuance in November and the first week of December. That’s made for a situation where charts of stock prices and bond yields aren’t sitting…(read more)
Via:: MBS Day Ahead: Still Facing a Light Calendar, Hoping for More Support
