Posted To: MBS Commentary
If you're just tuning in to 2016's bond market trends, it's been a good year so far. 10yr yields began around 2.30 and fell as low as 1.53 for a few moments 2 weeks ago. That puts the current trend in the same league as the sharpest rallies--the kind that only happen roughly once a year at best. Oil and equities markets are unquestionably a source of inspiration for bond markets. The correlation is a bit interdependent and messy, but in general, here are the key considerations (some of these compliment each other, some are counterpoints): Oil is lower due to lower demand and higher supply Lower oil demand implies a weak global economy, therefore stocks and bond yields are moving lower Counterpoint: higher oil supply is artificially driving prices lower, which is artificially hurting...(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/1LCmkFw
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