Posted To: MBS Commentary
Bond markets closed early today and will be fully closed tomorrow for the Good Friday holiday. It was also " month-end ," which can bring in additional compulsory volume from traders who have to make certain trades by the end of the month. One group of traders certainly already got their fill over the past few days: short-sellers (those betting on rates moving higher). In the face of moderate bond rallies, short sellers were forced to cut bait and close their trades. When it comes to shorts, this is accomplished by BUYING bonds. That bond buying helped fuel snowball rally momentum this week as lower yields only forced more short sellers to cover. Today suggested they had no intention of "re-shorting" bonds ahead of the 3.5-day weekend. That left bond buyers in control, and...(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://bit.ly/2GU4YcC
No comments:
Post a Comment