MBS MID-DAY: Bond Markets Super Sideways, Unfazed by Data and Events

Posted To: MBS Commentary

Bond markets have had plenty of would-be market movers thrown in their general direction today. This began in the overnight session with massive moves in shorter term European yields and substantial moves in longer term yields to boot. Despite that, the domestic bond market barely budged. While it's true that we don't always see US bond markets follow Europe in lock-step overnight, this is one of the bigger divergences. Next up on the list of potential market movers was the morning's economic data. There were a few line items that could have been taken in a positive light for bond markets--such as the miss in personal consumption (0.1 vs 0.3 forecast)--but in general, the data was NOT bond-friendly . Here again, the input didn't matter. Treasuries and MBS simply kept on truckin'...(read more)

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