Friday, October 2, 2015

MBS Day Ahead: Bond Markets an Underdog Heading Into NFP

Posted To: MBS Commentary

By all rights, yesterday was the day that should have seen domestic bond markets consolidate recent gains and take a breather ahead of this week's NFP data. The session even began that way but European markets had other plans. Both equities and bond yields moved forcefully lower in Europe--so much so that Treasury market participants couldn't be bothered to swim against the current. There's the rub--the lack of conviction . Bond markets showed up for this week's NFP early--perhaps as early as last week--and have subsequently gone wherever the winds of circumstance and related markets have blown. If stocks and/or Europe have been moving convincingly enough, sure... Treasuries will follow that a bit! If month-end buying needs bring in a bit more participation than expected from...(read more)
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from Mortgage News Daily http://ift.tt/1OcgfVN

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