Posted To: MBS Commentary
Today’s Retail Sales data stood a better chance to move markets than last time. Not only did the data move markets today, but it did so in a surprisingly big way given the magnitude of the ‘miss.’ Headline Retail Sales managed to hit +0.9 vs a +1.0 forecast. Not too bad right? Superficially, that’s not a bad miss at all, but apparently bonds were prepared for a big beat–or at least simply waiting to rule one out. Incidentally, it wouldn’t be hard to imagine that traders were psychologically prepared for a stronger report considering we’re coming off the weakest streak since the beginning of the financial crisis as far as this data is concerned. So perhaps the fact that it was “only” roughly in line with expectations was a lot less threatening for bond markets…(read more)
Via:: MBS RECAP: Bond Markets’ Big Reaction to Little Miss in Data
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