Posted To: MBS CommentaryToday ended up being somewhat triumphant for bonds. It didn’t begin that way, however. Yields were higher overnight and moved up just a bit more in the first hour and a half of domestic trading. Early economic data was largely ignored. At 9:30am, bonds started improving . Based on the timing, we can assume ETF trading played a key role as investors put on new trading positions for the new month. Stocks were also losing ground heading into 10am and that seemed to have a complimentary effect on bonds. Notably, bonds continued to fare well even as stocks bounced and moved higher by the end of the day. This leaves us with some evidence for a ceiling at 10yr yield levels near 3.16-3.17% and a floor at 3.06% based on the big bounce seen at the beginning of the week. Given that we’re currently…(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