Posted To: MBS Commentary
Bonds have been on a tear recently , easily breaking to the lowest yields of the year this week after some exploratory attempts last week. Geopolitical risk surrounding North Korea has been the centerpiece of the market's move away from risk, or so they say. But it's not quite that simple. Sure, North Korean headlines have definitely served as buying opportunities for bonds, but if this were a true " risk-off " move, we'd expect to see more participation from equities markets. Instead, stocks only briefly moved lower with bonds before grinding back up toward all-time highs. Meanwhile, the bond rally has been a consistent 2-month affair. This divergence suggests bonds have their own reasons to rally that transcend the mere "risk-on" vs "risk-off" themes...(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/2xTZJF0
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