Posted To: MBS CommentaryThe title of this commentary is not a Halloween pun . I don’t do Halloween puns anymore. No, there is some legitimate cause for concern–even a bit of fear–in the bond market movement seen so far this week. This movement wouldn’t be much to look at in and of itself, but it’s when we compare it to moves in equities markets that the fear starts to set in. What am I talking about? Really, the same thing I’ve brought up a few times since Monday morning when I noted that bond yields were unwilling to move to new lows on Monday despite stocks making new lows for the month. That’s highlighted in the chart below (“bounce clues”), as well as two subsequent examples of bonds’ willingness to sell despite an absence of obvious justification from stocks (highlighted as…(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