Wednesday , 20 January 2021

MBS Day Ahead: Gearing up for Fed or Running With the Pack?

By Matthew Graham

Posted To: MBS Commentary

Bond markets lost ground yesterday, which is notable in the context of recent events because other markets didn’t necessarily agree. By that, I mean the “risk-on/risk-off” pattern that has pervaded multiple asset classes continued heading in directions that had been friendly for US bond markets. There are a few things we can take away from that divergence. The first is one we should always keep in mind and that is that even the best correlations break down from time to time. Sometimes, the recent movements of a particular market suggest certain risks regardless of what previously correlated markets might suggest. In other words, bond markets had to choose between following certain representatives of the “risk-off” camp and following their own technical cues suggesting…(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Via:: MBS Day Ahead: Gearing up for Fed or Running With the Pack?

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

The Richest Appraiser in Babylon

If you’ve not read “The Richest Man In Babylon” by George S. Clason, stop reading …