MBS RECAP: Has Anyone Not Already Heard That Bonds Got Killed Today?

Posted To: MBS Commentary

These are the sorts of things I think about sometimes when I’m coming up with a title for the recap. If you have enough of a stake in bond market movement that you find yourself reading my commentary, is there any possible way you aren’t already painfully aware of what happened in bond markets today? Some day’s are so big that it’s impossible not to be aware of it. Either way, it’s a short story: bonds got killed. The Trump trade was supposed to be positive in the short-term, and indeed it was, but the short-term ended a few hours after the election was resolved. The 2nd Trump trade was bad for bonds due to inflationary pressure created Trump’s expected policy path. Markets didn’t see the 2nd Trump trade playing out as quickly as it did, but they sure see it now…(read more)

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