Stock market momentum isn't the only consideration for bond markets this morning, but it's perhaps the most overt. So far, it's helped MBS and Treasuries build nicely on Friday's gains.
Domestic bond markets began the day essentially unchanged after an uneventful overnight session. The 9:30am stock market cash open was a slippery slope for bond yields--the closer they got to the edge, the lower they slipped.
That made 9am to 9:45am the best time of the day for Treasuries and MBS, with both seeing accelerating gains. Both saw a brief correction after stocks bounced, and both broke to better levels when stocks resumed selling.
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