Posted To: MBS Commentary
In 2010 and 2011, the early phases of the European financial crisis caused movement in US bond markets that puzzled a majority of domestic investors. 2012 (the apex of the monetary contagion concerns) and 2014 (the inception of the long road to ECB QE) took that theme to another level. If we then conclude that it was Brexit that was primarily responsible for US yields being able to reach new all-time lows in June 2016, that means Europe has had an exceptionally heavy influence for years. But things changed in 2017. News and risks in the Eurozone quickly became boring after Brexit. Markets largely moved on to trading the new and unexpected realities of the Trump administration–a theme that’s arguably dominated most of the big picture bond market momentum since election night in late 2016…(read more)
Via:: MBS Day Ahead: Is Europe Back On US Bond Market Radar?
