With no major economic data on the calendar, and no game-changing headlines to react to, bond markets have been content to follow stocks so far this morning. Stocks are weaker and bonds are stronger. There's not much more to it than that.
This dynamic didn't really begin until the domestic session. Overnight trading was quiet as Japanese markets were closed for a holiday. European trading was sideways on either side of unchanged. Stocks and bond yields began sliding together just after 8am.
MBS have generally been doing a better job of keeping pace with Treasuries since Friday. Fannie 3.5s are the most relevant coupon for rate sheets at the moment and they're up nearly a quarter of a point on the day.
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