Posted To: MBS Commentary
Admittedly there are far more than 2 reasons for anything in financial markets to do anything. But when it comes to “the why” behind the ability of Treasuries and MBS to continue adding to improvements despite last week’s NFP (data that would historically set a negative trend for the entire month), look no further than Europe. I posted this chart earlier today as well, but considering the lion’s share of the market movement came during the European session, it’s just as relevant. This particular chart has the DAX stock index, but European bond yields traded a similar shape. In fact, German 10yr yields (benchmark for Eurozone) hit a new record low today. Once Europe was done for the day, US markets were more free to go about their business. Stocks certainly did and bonds…(read more)
Via:: MBS RECAP: 2 Reasons for Today’s Gains and Europe is Both of Them
