Posted To: MBS CommentaryToday’s gains are primarily a factor of the bond market’s response to yesterday’s Cohen headlines (plea deal regarding campaign finance violations). Bonds aren’t too flustered about the headlines, but a few traders sought safe havens due to the increased odds that the president will eventually be implicated by the underlying investigation. 10yr yields were pushing their best levels in months just before the 9:30am NYSE open. After that, stocks took charge, telling bonds not to worry about those political headlines and to calmly back away from a range breakout. Bonds complied, but reserved the right to react to the afternoon’s FOMC Minutes. The Minutes were almost completely uneventful, with most of the bullet points well-assumed by financial markets. If there was any detectable…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.