Posted To: MBS Commentary
An ‘inside day’ refers to today’s trading range happening completely INSIDE yesterday’s trading range. The resulting lower-highs and higher lows bespeak a decrease in the overall level of conviction. It’s not for nothing that we’ve had two inside days in a row now. Part of the reason for that is the fact that Tuesday set a huge range, but it’s also true that bond markets are still waiting for Europe to make up its mind as to the next big move. European bonds have been essentially flat in February. Treasuries, meanwhile, have begun freaking out on the chance that Europe’s recent sideways grind is a prelude to a bigger bounce. Today’s economic data was irrelevant as far as trading reactions were concerned. For more salient in terms of causality have been Greece…(read more)
Via:: MBS MID-DAY: Bonds Trading another “Inside Day,” This Time with Nagging Weakness
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