Posted To: MBS CommentaryFrom New York, traders have been looking east for at least some level of inspiration from Turkish market volatility. As we’ve discussed exhaustively, however, that’s far from the only game in town. Today brings fresh evidence. In looking east this morning, traders passed right over Turkey and continued on to China, where a sharp move lower in equities futures drove a moderately big sell-off in US equities futures. Bonds picked up some ” risk-off ” demand as a result, and that ultimately proved to be a good defense against a stronger Retail Sales number this morning. As the chart points out, there was a staggeringly big flattener trade just before Retail Sales. This one was actually reported on the CME’s block trade screen, so there’s no guesswork. Simply put, a big…(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