Posted To: MBS Commentary
Sad start, but happy ending for bond markets "Tradeflows" (the trading cues that remain after we take away any overt cues like economic data, headlines, and movement in other markets) accounted for much of AM weakness. Tradeflow momentum toward higher rates (lower prices) was exacerbated by corporate bond issuance (higher supply in bonds = lower bond prices) Things turned around in the 9-11am time frame thanks to tradeflows running out of steam, falling oil prices, and weak economic data. This morning was not a happy time for bond markets. For several hours, it looked as if we would be taking yet another step back toward last week's weakest levels. Frustratingly, much of today's initial weakness was merely product of tradeflows. In other words, it was just the way the ball...(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/21dQOtW
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