Posted To: MBS Commentary
Trading levels began the day in better territory this morning after a strong overnight session for Treasuries. It wasn’t so much that they gained an especially large amount, but rather that they defied the input from related markets that have been consistently performing better. The clearest example would be German Bunds (the benchmark for the European bond market). They sold-off in a big way today. That selling pressure threatened to drag US bond markets into weaker territory early this morning, but fortunately Retail Sales completely missed expectations. This reset the baseline for bond market selling, but bond market selling continued nonetheless. In fact, notwithstanding some volatility surrounding the auction and the European close, the selling was fairly linear leading back from the…(read more)
Via:: MBS RECAP: Strong Start After Retail Sales, but Gains Evaporate by Close
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