Posted To: MBS Commentary
The overnight session began with bond markets moving into weaker territory against the backdrop of a recovery in equities. There was clearly a lot of month-end buying yesterday, so it was fair to wonder if the sponsorship would wane today. In other words, certain investors are forced to buy a certain amount of bonds heading into the end of the month. They can do this any time before the end of the month, but usually have to make adjustments in the last few days in any event. Yesterday's trading patterns suggested that month-end buying was prevalent, so there was some cause for concern that today wouldn't be as resilient by comparison. If you happened to have been up all night watching Treasury yields rise, that concern was all the more logical. Fortunately, month-end buyers were lined...(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/1O8fqNH
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