Posted To: MBS Commentary
What would you expect to care more about Chinese economic data: the US bond market or the Chinese stock market? Option 2? Good, I agree. Now, if you said that US bond yields and Chinese stocks were moving higher together in response to strong Chinese economic data, I could also agree with that, but I hope we could both agree that any subsequent reversal in Chinese stocks would be worth at least something to US bonds. That's what happened overnight. In fact, by 4am, Chinese equities had given back almost all of their gains from Friday. But Treasuries didn't even seem to notice. Granted, we could certainly say that Friday's moves were driven by economic data and today's were due to "something else," except of course when the first sentence of today's Reuters Asia...(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://bit.ly/2PkhPJD
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