Posted To: MBS Commentary
10yr yields are up just more than 7bps to 1.75%. That’s bad in the sense that 1.70 is an inflection point that would have been nice to hold, but still OK in the sense that 1.84 is much more important. Minutia aside, even the strongest long-term rallies have to have some down days periodically. Back to minutia… What’s up with this move? Primarily, it’s a factor of overblown reactions to Greek drama in Europe. News came out yesterday that Greece would be trying to strike a deal with creditors, but it was after the European close. That left the brunt of the reaction for today’s European session, and there was no doubt that it centered on Greece as the country’s 3yr debt plunged 300bps. For context, that would be similar to US 10yr yields dropping 30bps in 2 hours, something…(read more)
Via:: MBS MID-DAY: Bond Markets Hop on the Global ‘Risk-On’ Bandwagon
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