Posted To: MBS Commentary
Overnight market movement was kind to the US bond market, keeping some hope alive for a continuation of recent strength. Rather than an epic rebound in stocks, we’ve instead seen moderate losses so far this morning. Gains in European bonds did even more to paint a picture of risk-aversion . Between the two inputs (weaker stocks and stronger European bonds), US bond markets have enough motivation to ratchet down to more new lows of the current rally. While the overnight gains are all well and good, it remains to be seen how domestic traders will treat stocks during US trading hours. In other words, it’s still too soon to declare that the risk of an early-2019 stock market correction has subsided. Economic data could be a factor as well, but not today! There are no significant economic…(read more)
Via:: MBS Day Ahead: 2019 Starting Off Strong For Bonds
