Posted To: MBS CommentaryBonds rallied today, eventually. Most of the session was fairly flat with the afternoon bringing most of the rally thanks to another sell-off in stocks. This time, the stock losses were more measured, but only relative to days like yesterday. On a normal week, today’s stock losses would have been huge. The fact that bonds only gained as much as the did is telling, and probably grounds for concern about the sustainability of the move. As much as it pains me to say it, bonds have their widest eye on stocks at the moment. The uncertainty of the day’s stock momentum prevented any bond trading aspirations during the morning hours, despite the fact that weaker core inflation justified a rally. Think about it this way: bonds already got to rally quite a bit yesterday, well before the inflation…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.