MBS RECAP: Bonds Tune Out Competing Voices to End Flat

Posted To: MBS Commentary

Between the overnight session and domestic trading hours, the following voices tried to get inside the head of bond markets: A North Korean missile launch asked bonds to rally from “safe haven” demand. They sorta did at first. Hawkish comments from a British central banker asked global bond yields to move higher. US Treasuries sorta complied Weaker Retail Sales data opened the door for bonds to rally in the morning. They began to walk through. The 9:30am NYSE tradeflows and stronger inflation expectations in the 10am Sentiment data said “not so fast” to the bond rally. Bonds heeded the warning And finally, an ongoing stock rally provided justification for bonds to weaken all day long, but they did nothing of the sort. Despite all of the above, 10yr yields hit the 3pm closing…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

The entire article can be viewed