Euros surged in the early AM, setting the tone for Treasuries and equities, which looked willing to head in either direction until then. Domestic traders agreed when they got in for the day with quick but moderate bout of snowball selling and equities futures buying. Comments from a G7 official made for a quick pop in the Yen and helped bond markets find their footing temporarily. Equities took over as the directional guidance giver of choice after the opening bell, and found their own footing with help from the Euro's ratcheting movements higher.
Scheduled Fed Treasury purchases didn't cause any drama from bond markets at the conclusion of the 11am operation, but neither do bond markets seem especially inspired by any one thing. MBS have been calm, slightly weaker, and sideways just over 103-00, still holding intermediate support, but any further weakness is a potential break lower.
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