Posted To: MBS Commentary
The overnight trading session was thinly-traded due to a holiday closure in Tokyo. Buyers outnumbered sellers until the domestic session. Promptly after the 820am CME Open , sellers showed up in US Treasuries. Bond market weakness radiated out from there. By the end of the day, it would become more clear that some of the selling was related to corporate debt hedging (read more about why that matters HERE ). Bonds were weaker throughout the morning hours, and then leveled off after European markets closed. It's not uncommon to see Treasuries level-off or reverse course right after European bond markets close. This can happen for a variety of reasons although it can be as simple as a sudden drop in market participation that happens when only one of the three continental areas is trading ...(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/2QNKPrX
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