Posted To: MBS Commentary
Much of the volatility in late April and early May has been frustratingly opaque in terms of traditional cause and effect relationships. We were forced to resort to discussing things like tradeflow momentum and corporate issuance to explain movement. While these two esoteric factors are always in play to some extent, it’s much easier to accept them when they’re pushing in the same direction as the economic data. That was the case today. In terms of the aforementioned esoteric stuff, we had positive tradeflow momentum right off the bat in the overnight session. US Treasuries stayed green, defying European bond market momentum which carried German Bunds into negative territory just after 5am. Whereas European bonds would never make it back into positive territory, Treasuries bounced in…(read more)
Via:: MBS RECAP: Moderately Stronger for Surprisingly Logical Reasons
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