Posted To: MBS Commentary
Some magical combination of new QE tradeflows and Greek drama (surprisingly enough) has driven German Bund yields well into new all-time lows today. In one school of thought, this is exactly what we’ve been waiting for in terms of domestic bond markets as it finally marks a decisive move out of the narrow range established in February. In other words, a potential long-term bounce in European bond yields is/was one of the things potentially causing anxiety for US bond markets recently. Today’s rally eliminates that big bounce potential, or at least resets the clock on “days spent without making a new low.” (The more those days rack up, the more anxiety can build.) As such, US 10yr yields have continued backing down from their run at recent highs, and MBS have similarly retraced…(read more)
Via:: MBS MID-DAY: Bonds Reinvigorated by European Rally
Share this article
