Posted To: MBS Commentary
Bond markets held their ground today, which is quite the accomplishment considering stocks rallied. Rates and stocks have been strongly correlated in 2016 with each noticeably upbeat day in stocks also resulting in a noticeable increase in rates. Today was the first day that broke the mold. To be fair, in terms of pure correlation (one is moving up while the other is moving up and vice versa), nothing much has changed. Stocks and bonds still spent almost the entire day moving in the same direction as one another. The divergence is a product of the magnitude of the moves. In short, bond markets began operating on a much smaller scale after 10am. Possible reasons for this include bond trader positioning ahead of tomorrow's FOMC announcement, increased volatility in stocks surrounding earnings...(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/1VphCQx
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