Earlier this morning, there was a solid 30 minutes where it looked like stronger economic data would make things challenging for bond markets heading into the afternoon. But half an hour is as long as that lasted.
Multiple asset classes around the globe embarked on a massive "risk-off" move starting around 9am ET. Key participants included Japanese Yen, Eurodollars, Global equities markets and US bond markets. All of the above have moved away from risk (stocks lower, Yen/Euro stronger, Bonds/MBS Stronger).
Frustratingly, there's no overt cause&effect in play. Nevertheless, the move is substantial, with MBS up 3/8ths of a point and Treasuries lower by more than 50bps in 10yr Notes. Stocks are off more than 2% from morning highs. The gains bring MBS and Treasuries to their best levels in a month. Most lenders have repriced for the better. If you haven't seen one yet, you likely will.
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