MBS RECAP: Curse Broken? Bonds Waiting on Data to Confirm

Posted To: MBS Commentary

Bond markets found their f irst green day since June 27th today and for no particular reason apart from today being the first full trading day in July. That assertion comes courtesy of the volume and volatility seen during the various opening and closing times for stocks and bonds. First up, we had the 3am European bond open which brought US yields right up to the ceiling seen on Monday afternoon. After a modest bounce, the 8:20am CME open pushed rates right back to the ceiling. At 9:30am, stocks got involved (including bond market ETFs), and rates embarked on their best rally of the day. There was arguably some help along the way from weaker Factory Orders data, but that’s a “maybe,” whereas a tradeflow-based move is definitely a pervasive ingredient in today’s trading. The…(read more)

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