Posted To: MBS Commentary
Bonds began the day in weaker territory and were approaching the highest yields of the past 2 months by mid-morning. Part of the negativity could have been driven by the higher Labor Cost data (+4.3 vs +2.1 forecast) which can speak to higher worker compensation, and thus, inflation. But the lion's share of weakness was simply due to the way the chips fell with respect to the new month's trading positions. More simply put, there is always a certain amount of trading momentum that just 'happens' at the beginning and end of any given month. There's no way to know which way it will push markets, but it's easy to identify in hindsight. Bottom line, that's just the way traders were trading this morning. All we could do was hope for a weak ISM number. Indeed, we got a...(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/2bFXptT
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