MBS Week Ahead: First Week Back From Holidays is Action-Packed

Posted To: MBS Commentary

There are several types of traders that play key roles in the bond market. Their motivations and concerns can be surprisingly diverse . For instance, one might be strictly opportunistic, utilizing leveraged money to make bets over the shortest of time horizons (many times in and out on the same trading day), while another might not even care what the market is doing and simply be buying and selling based on an index that a certain percentage of their assets are supposed to match. No matter how different bond traders might be, they all share the need to open and close trading positions. In other words, they all have to make bets. Because of the flow of business at the beginning/end of a month/day/quarter/year, there can be a noticeable impact from the opening of new positions for Monday/January...(read more)

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