Posted To: MBS Commentary
If there were a magical ratio comparing the overall movement in bond markets to the relevance of the factors motivating the movement, it would be off the charts with today's rally. A 4.72bp improvement in 10yr yields is nothing to shake a stick at--especially when it resulted in the best closing levels in nearly 2 months. But this particular rally is utterly lacking in a few key ingredients we normally like to see when bonds are green. First and foremost , there's just not any volume or liquidity to speak of at the moment. That's not altogether uncommon for this time of year, but it stands out a bit more when it's the caveat to an otherwise "nice" move. Before we go any deeper into that rabbit hole let's cut it short with an example to drive home the point. Imagine...(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/2g5waMf
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