Friday, October 28, 2016

MBS RECAP: Market Fatigue Showing as Fed Day Looms

Posted To: MBS Commentary

After 2 days of heavy selling in global bond markets, today was a relative paradise of inactivity. Volume remained rather high by historical standards, but that was due to an afternoon anomaly that brought in heavy 2-way flows (balanced buyers and sellers). Volatility in trading levels was actually highest after this morning's economic data. GDP came in stronger than expected (2.9 vs 2.5) and bonds added to overnight weakness. 10yr yields hit their highest intraday levels in nearly 5 months, but quickly bounced back toward unchanged levels. The anomaly in question was the announcement that the FBI was reopening its investigation into Hillary Clinton's emails. Of course this has all sorts of implications regarding the presidential race, and markets were eager to take and make bets accordingly...(read more)
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from Mortgage News Daily http://ift.tt/2ffhmtJ

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