Posted To: MBS Commentary
All things being equal, today was a fine day for the bond market. Sure, 10yr yields ended the day 2bps higher than yesterday's latest levels, but in the recent context, they're better thought of as "sideways at the best levels in a long time." When bonds have improved as rapidly as they have over the past week, traders are keenly on the lookout for a big, corrective bounce. But we haven't seen one yet. We may not see one unless some fundamental motivation comes along in the form of exceptionally strong economic data at home or abroad. In today's case, exceptionally weak economic data provided the fundamental motivation bonds needed to hold on to the strong territory. It came in the form of Consumer Confidence (124.1 vs 132.0) at 10am ET. From that point on, rates never...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
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