MBS Day Ahead: So is it Greece or Yellen Moving Bond Markets?

By Matthew Graham

Posted To: MBS Commentary

The answer to the question posed in the headline is “yes,” both Yellen and Greece are moving markets. Unfortunately for the more traditional thinkers in the audience, US bond markets have unequivocally been taking their big-picture cues from Europe/Greece despite getting strong short-term cues from Yellen–especially yesterday. So if you’re only asking about yesterday, Yellen’s lack of bombshells was positive, as evidenced by the fact that the sharpest rally move occurred right when she finished the Q&A. Bigger picture, not only does Greece and the Eurozone situation dominate domestic bond market momentum cues, but there’s not even a close second . If the door was open for Yellen to move markets yesterday, it’s because US bond markets had strayed more quickly than…(read more)

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