Posted To: MBS Commentary
Bonds sold off aggressively today, for a combination of reasons that are tremendously unsatisfying in a traditional market-watching sense. For example, it would be nice if we could point to something tidy and logical like all-time high stock prices, or the stronger Consumer Confidence data, but at the very best, these were merely supporting actors in a subtler, more complex drama. Actually, it’s only complex inasmuch as it’s not the first thing most market-watchers think of when they see moves this big. It’s actually fairly simple as long as you can accept that something so simple could actually cause so much movement. Long story short: a small imbalance of positivity had built up over the past 2 weeks. It wasn’t too troubling in and of itself, and it could have turned into…(read more)
Via:: MBS RECAP: For Bonds, Worst Day Since Late June ECB Scare