|This email was sent to you by:|
Harry Chriest |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Bond Markets Stronger After Retail Sales, German Central Bank News
Posted to: Micro News
Tuesday, May 13, 2014 8:51 AM
Treasuries began their overnight trading adventures in very non-adventurous form. 10yr yields moved sideways through Asian trading hours and didn't budge until news that the German central bank (Bundesbank or "BUBA") is open to significant stimulus crossed the wires. This synergizes with last week's assertion from Mario Draghi that the European Central Bank will be taking new, stimulative action at the next meeting.
Treasuries improved with German Bunds (10yr German government debt--a benchmark for "EU bond markets"), but Bunds got most of the benefit. The tables turned after this morning's Retail Sales data came out much worse than expected. Here's a run-down:
- Retail Sales (April) +0.1 vs +0.4 forecast
- March revised up to +1.5 from +1.2
- Excluding Autos 0.0 vs +0.6 forecast
- March revised up to +1.0 from +0.7
- Excluding Autos/Gasoline -0.1 vs +1.4 in March
Retail Sales data has been an on-again off-again market mover recently, but this is a big enough deviation from the consensus to provide some clear guidance. After hitting the domestic session fairly close to unchanged, Treasuries and MBS improved significantly.
10yr yields dropped from 2.66 to 2.63 and Fannie 3.5s rose 6/32nds to 101-25.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.