Friday, October 30, 2015

MBS RECAP: Bond Markets Still Coming to Terms With Week's Losses

Posted To: MBS Commentary

Bond markets continued to trade resiliently through the close today with the help of month-end buying demand. A small-scale battle played out earlier this morning between those month-end buyers and the more tactical sellers looking to push yields higher to set up better entry points (i.e. push prices down in order to buy bonds later). These two classes of investors are often referred to as "real money" (pension funds, money managers, insurance funds, etc) and "fast money" (leveraged accounts, prop desks, hedge funds). Real money is where month-end buying demand comes from and that buying clearly began after the 8:20am CME open when yields had been pushed up over 2.17 . It put a stop to the fast money selling that began roughly an hour earlier when yields were down at 2.146...(read more)
Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


from Mortgage News Daily http://ift.tt/1OecMWY

No comments:

Post a Comment