On a positive note, bonds were slightly stronger today and yields held just barely below a technical level that has been more of floor than a ceiling for much of 2017 (2.37%). On a negative note, bonds maintained much of the weakness seen last Friday afternoon. On a positive note, Friday afternoon's weakness was a precipitous correction to the best levels of 2017. On a negative note, it looked like bonds were interested in bouncing at even higher yields before getting hit with friendly surprises in the form of Syria headlines and a super weak NFP reading.
We could go on and on with the general balance of positive and negative, but isn't it always more important to figure out where we're going next as opposed to where we've been?
In that regard, this week may struggle to be relevant and informative. For now, we're waiting to see if Friday's weakness was the first step in a bounce on the 2017 floor in bond yields. With Passover and Easter holidays taking a lot of participation out of the market, and with the 2 biggest pieces of economic data hitting on Good Friday (markets closed), we may well be waiting for next week before we have a clear sense of the next move.
Join Now or Login to Post Comments