MBS Day Ahead: Here’s What a Bond Rally Costs in Terms of Stock Selling

By Matthew Graham

Posted To: MBS Commentary

Anything more than 20 points is a big day of selling in terms of the S&P, but that’s a small enough number to be relatively common, periodically. From there, a sell-off of more than roughly 33 points becomes much less common. By the time we’re talking about anything over 50 points, examples are limited to only a handful every year (and NONE from August 2011 through August 2015). Sell-offs of more than 80 points have occurred exactly 3 times during the recovery from the Great Recession–all of them in 2018–and yesterday was one of them. The other two 80+ point S&P sell-offs were back in February, and we can basically throw the 2nd one out as being driven by whipsaw that was part of the same sell-off (aka, stocks bounced bigly on the way down and then returned for only a bit…(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: Here’s What a Bond Rally Costs in Terms of Stock Selling

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

Did the U.S. Housing Market Stay Hot in May?

Redfin reports that home-sale prices rose 3.6% year-over-year to an average price of $315,700—the largest …