MBS MID-DAY: Stronger Territory, but Under Pressure Ahead of Auction

Posted To: MBS Commentary

Bond markets pressed into their strongest territory since the late August flight-to-safety this morning. 10yr yields made it as low as 2.081 before pulling up at the end of the European session. European influences have been mostly a blessing , though, with German Bunds (Europe's 10yr benchmark) and various European equities indices making the first arguments for a widespread move away from risk. That's another way of saying "sell stocks, buy bonds." Global equities markets, including S&P futures followed European equities lower into the 7am hour. European markets flat-lined at that point and domestic markets maintained the momentum. The chart below shows the DAX (Germany's main stock index) in green and Bunds in Red, followed by the S&P (futures) in blue and the...(read more)

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