Posted To: MBS Commentary
The headline is the recap today. If an hour of the day ended with an "AM," it was good for bond markets today. The only exception would be the midnight-2am time frame. So the rallying hours were really 2am through Noon eastern, and therein lies the clue as to the source of the strength. 2am-Noon Eastern coincides with most the European market hours, and Europe clearly provided the fuel for today's bond market rally. German Bunds had a mind-bending rally today, moving from highs of .61 to lows of .53. If that doesn't sound like a lot, consider that US Treasuries only managed a little better than HALF that pace over the same time frame in terms of price. Or simply consider that Bunds (these are Europe's benchmark 10yr notes, by the way) ended their day 5bps lower and US...(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/1jBcDzM
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