MBS Day Ahead: Waiting on ISM For Indication on Sensitivity to Data

Posted To: MBS Commentary

Bigger picture: bonds consolidating inside March/April range Technicals all turning bullish, today is important confirmation Data sensitivity is a bit of a mystery; ISM could help confirm The longer you've been following markets, the more familiar you will be with the concept of data dependency . In other words, the traditional relationship between data and bond markets suggests that stronger economic fundamentals push rates/stocks higher and vice versa. Of course this trading dynamic has broken down at times --especially when QE has been at stake. In that twilight zone, weaker economic data increased the chances of Fed QE and paradoxically boosted stocks--sometimes enough to paradoxically hurt bond markets. While QE isn't at stake right now, the Fed's rate hike agenda is very much...(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/1NVU0Ey