MBS RECAP: Bonds Hold Ground Despite Stock/Oil Gains

Posted To: MBS Commentary

Data overlooked as bonds react to stocks/oil early Bonds then ignore stock/oil rally later in the day and hold ground at stronger levels Could be month-end bond buying or bonds could be calling stocks' bluff. Bond markets had quite the resilient little day. Stocks and oil prices both surged well into positive territory in the early afternoon but MSB and Treasuries merely opted to level-off and hold sideways at stronger levels. Granted, these levels are still weaker than yesterday's best levels, but they're just as far away from yesterday's weakest levels too! So pick the fullness of your glass however you see fit. Data was uneventful in terms of market reaction. The data itself was a potential threat with Durable Goods coming in much stronger than expected. But bond markets...(read more)

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