Monday, August 28, 2017

MBS Week Ahead: Slow Summertime Trading Almost Done

Posted To: MBS Commentary

Sometimes, events are such that the typical summertime trading patterns aren't easily seen in terms of trading ranges and volatility. For instance, in 2015, we had a correction in bond markets following the ECB-QE-inspired low yields earlier in the year collide with the massive China-inspired stock sell-off in August. In 2013, traders who went on vacation in a defensive stance following the taper tantrum, and illiquid markets quickly ran 10yr yields up to 3.0%. But in cases where there are no big-picture market movers imparting their spin, bonds tend to drift in a way only seen at this time of year. Observing it isn't an exact science, but hopefully the following chart helps. What you're looking for is a general flattening of both the yield range as well as the momentum metrics...(read more)
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from Mortgage News Daily http://ift.tt/2wCzhlC

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