MBS Day Ahead: A Bullish Big-Picture Case for Bond Markets

Posted To: MBS Commentary

There are no significant data or events on the calendar today and the Fed remains in its "blackout period" (where Fed speakers abstain from commenting on monetary policy in the week and a half leading up to a Fed Announcement). On top of that, we've made no bones about Thursday being the focal point for market volatility as traders wait to see what comes of Comey's congressional testimony. But despite all that, the day begins with bonds at the best levels of 2017 thanks to a " risk-off " move in Asian and European markets as well as headlines regarding China's intent to start buying more US Treasuries. The ability for bonds to rally at current levels, even as we wait for the seemingly more important market movers later in the week, speaks to the current bargaining...(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/2sO38BX