Bond markets opened and spent the first hour of the day in weaker territory, but began to recover even before the Existing Home Sales data. That recovery continued after the weaker-than-expected data, though not necessarily because of it.
Given the fact that stocks are also rallying and that the data had little visible impact on bond markets, it's more likely that the recovery is fueled by less overt factors. These include a technical predisposition to "hang out" near 2.75% in 10yr yields as well as ebbs and flows related to the corporate bond market. Ultimately, it hasn't been too hard to create the limited amount of movement given today's fairly low volume.
Join Now or Login to Post Comments