Posted To: MBS Commentary
It’s always a bit disheartening when the day after an awesome rally ends up erasing a good-sized chunk of the gains. That was the case today as the close of European markets once again coincided with domestic weakness. The sharper moves were certainly in Europe, both in stocks and bonds, heading into the noon hour, but it was an important rush of weakness for US markets as well. Reason being: it pushed 10yr yields over 1.95%, a technical level that–once broken–prompted additional selling pressure. In qualitative terms, 1.95 was like a line between being able to say that bonds were ” mostly holding yesterday’s gains” being forced to say that bonds had ” erased some of yesterday’s gains.” Notably, the adjective for the second option is “some” as opposed…(read more)
Via:: MBS RECAP: If Yesterday Never Happened, Today Would Have Been Awesome
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