MBS MID-DAY: Bond Markets Holding Modest Overnight Gains

Posted To: MBS Commentary

It has been a remarkably quiet day so far during the domestic session. This seems more like the rule than the exception of late. The only instance of volatility (if you can call it that... and people will laugh at you if you do) came during the late overnight session after some reasonably strong data in Germany. US and German Bund yields rose together, but both changed course before moving into negative territory. German yields went on to erase most of Friday's weakness. US bond markets are not quite there yet. From a technical perspective, the overnight range had a clearly-defined ceiling at 2.085. As yields began to move back lower into the domestic trading session, traders who sold bonds on Friday afternoon quickly moved to cover those 'shorts' (aka, buying bonds to close a short...(read more)

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