Posted To: MBS Commentary
Bond markets began domestic hours only slightly weaker, but that didn't last. Milliseconds into the 8am hour, we saw stronger inflation data in Europe and economically bullish comments in Yellen's prepared statement for today's congressional testimony. Granted, Yellen is on the way out as Fed Chair, but her thoughts on the global economy are still quite relevant for several reasons (not the least of which being that she's a good indicator of the rest of the Fed's thinking). Then at the 8:20am CME open (the first major window of liquidity and participation in bond markets) traders were lined up to sell. This mini-snowball of tradeflows (traders cashing out their previous bets on a flattening yield curve) accounted for the remainder of the early morning market weakness. The...(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/2BzcpTM
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