|This email was sent to you by:|
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
Empire Strikes Back! (Except Empire = Bond Markets)
Posted to: Micro News
Friday, June 13, 2014 10:53 AM
After losing ground in quasi-inexplicable fashion this morning, bond markets are bouncing back in even more inexplicable fashion! Whereas we could lean on the stock lever this morning, the most recent move has seen stocks and bonds improve together! (The stock lever principle usually sees them move in opposite directions in terms of PRICE).
Even many wall street analysts heading into 10am stipulated further stock selling would be required for continued bond market strength. Boy were they wrong! So I will avoid venturing a guess as to the current state of trading except to say that 10's are bouncing near yesterday's most frequently recurring highs, and they're NOT running quickly past yesterday's lows, or even today's overnight lows.
That has all the trappings of a boring, technical, range-bound circling of the wagons heading into the weekend--a move that is certainly in bond market's play-book. This time it's working in our favor, at least inasmuch as reversing most of the earlier weakness.
Fannie 3.5s are now down only 3 ticks at 101-30 and 10s are only up 2 bps at 2.606. They'd been as high as 2.644 this morning.
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.