Posted To: MBS CommentaryThose who expected the election to matter to bond markets got their way overnight. Those who expected elections to be inconsequential got their way by the end of the day. During the overnight session, there was clear correlation between the odds of Democratic control of the House and strength in bond markets. When the results were more or less official, rates fell to their best levels of the week. Notably, however, they avoided breaking below the 3.18% technical level. Bond market strength remained in play during the morning hours. Indeed, it may have remained in play all day had it not been for a terrible reception for today’s 30yr Treasury auction as well as a hefty slate of corporate debt issuance . By the end of the day, Treasuries had edged just barely back into negative territory…(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