Posted To: MBS Commentary
Unexpected headlines have given markets plenty to digest this morning. German bond markets began pushing yields higher right from the start of the overnight session. That was offset by strength in UK bond markets leading up to the domestic open. Then things started getting crazy. Mere seconds after US stock markets opened, apparent details of tomorrow’s ECB QE announcement were leaked. This–more than anything–sent interconnected shockwaves through financial markets. Very few asset classes were immune. All that having been said, the inspired volatility was “net sideways” for bond markets. In other words, there were rapid ups and downs, but they resulted in no net change to trading levels. The day’s big move began at 11am and there’s no satisfying explanation for it. All…(read more)
Via:: MBS MID-DAY: Snowball Selling After Busy Morning of Unexpected Headlines
