Posted To: MBS Commentary
As we approach the rest of the trading day, keep the info from this month/quarter-end bond buying primer in mind. Remember that the bond market unofficially closes at 3pm Eastern time (due to the 3pm close of CME pit trading as well as simple market convention) even though trading visibly continues through the 5pm close of CME electronic trading. Bottom line: there can be a gigantic flurry of volume and volatility centered on 3pm, and there won't be any overt correlation to news or data. So how exactly does month-end affect bond markets? Money managers are one of the major contingents of bond market participants. That means that what they do impacts trading levels, and they operate with a slightly different set of motivations at times. This is most easily seen in the context of 'month...(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/2dfkV0v
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