Thursday , 17 October 2019

MBS RECAP: Trade Headlines Provide Sneak Peak for Bond Market Vulnerability

By Matthew Graham

Posted To: MBS Commentary

The Wall St Journal ran a story this afternoon suggesting Treasury Secretary Mnuchin was pushing for a compromise deal to ease Tariffs on China in order to grease the skids for trade talks. As a result, stocks and bonds lost their cool –relatively. Case in point, in the 30 minutes following the headline, nearly 350k 10yr Treasury futures contracts traded. To put that in perspective, the 30 minutes following the January 4th jobs report saw just over 250k. To be fair to the jobs report, it created lasting volume throughout the day whereas the trade-related headlines made for a much more condensed dose. Even so, the reaction speaks to importance of trade-related updates as the US works on hammering out a deal with China. We could also argue that it speaks the deprivation that markets have been…(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Via:: MBS RECAP: Trade Headlines Provide Sneak Peak for Bond Market Vulnerability

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

REO Activity’s Ups and Downs

Foreclosure activity has continued to decline, but these markets are bucking national REO trends. The …