Posted To: MBS Commentary
The past week has been unpleasant for bond markets, to say the least. Even before that, the strong bounce off the long-term lows in mid-February forced us to consider that the sun might be setting for 2016’s impressive rally. But it’s good to remember that same old axiom about “ebbs and flows” when it comes to trading momentum. We most recently discussed this in the context of bonds’ need to inhale periodically before breathing more fire. Even so, it’s hard (and perhaps even stupid) not to be concerned that the sharper corrections are something more than mere corrections. With rates operating near-enough all-time lows, any big bounce could mean we just witnessed a long-term bottom. Painful reminders dot the timeline over the past few years: early 2009, late 2010, mid…(read more)
Via:: MBS Day Ahead: The Sun Also Rises For Bond Markets
