Posted To: MBS CommentaryNews regarding Cohen’s plea deal came out right as futures markets were closing yesterday. There were only 15-20 minutes for a reaction, and we wouldn’t normally expect to see a full-fledged reaction at that time of day anyway–especially during this time of year. That left some uncertainty as to how today would begin, but bonds ended up being right in line with yesterday’s post-Cohen levels a few minutes into domestic trading. Volumes have been far from extreme, suggesting markets aren’t incredibly interested in this drama until and unless it officially involves the president. Still, they’re interested enough to help push bonds right up to the edge of their best levels of the summer . The next major milestone would be a break below 2.82% in 10yr yields. If that ends up…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631