Posted To: MBS Commentary
Last Monday saw an unpleasant reversal of 2 days of gains heading into the previous weekend. Now this Monday is going through some of the same motions. But as we discussed on Friday and earlier this morning, things are different this time around, and none of this morning’s weakness refutes that so far. Here are a few things to keep in mind when considering that today is “less bad” than last Monday. Right off the bat, it should be noted that volume is exceptionally light in the recent context. Combined with the absence of meaningful economic data and the ongoing phenomenon of light liquidity, this greases the skids for trading to have a far bigger impact on market movement than it normally would. From there, let’s consider how US and European bonds have been moving together…(read more)
Via:: MBS MID-DAY: This Monday is Actually Better Than Last Monday. Here’s Why
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