Posted To: MBS Commentary
Month/quarter-end buying was an important part of this week's strength through Wednesday. It served as sort of a constant, mildly positive force helping keep yields anchored despite an attempt at a bounce in equities markets. There's no rule that says had to follow stocks higher yesterday, so we shouldn't be overly-surprised that they didn't. Still, there has been quite a bit of that 'stock lever' correlation lately--enough that it makes sense to figure out what changed--if anything--in order to bring about the new market behavior. We can definitely chalk the change up to the month-end trading environment. That might seem to imply that we're heading into the rest of the week at a disadvantage, but it doesn't really work like that. The prevalent tradeflows heading...(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/1KNgvqi
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