Posted To: MBS Commentary
When you get an instantaneous 7bp rally in 10yr yields following an FOMC communication, only to immediately bounce on the preexisting trendline and continue in the same direction as before, you know that bonds aren’t paying the normal level of attention to the Fed. That’s nothing new , but it was more than fair to wonder about it yesterday afternoon. Today cleared up any doubts . It’s all about Europe, and the thesis is the same as it has been. We’re waiting on European bond markets to commit to a direction after having flat-lined in February. For some market participants, that flat-line is terrifying. They’re worried it means that European bonds are getting ready to bounce higher as soon as Greece is cleared up. And considering that US bonds are where they are because of…(read more)
Via:: MBS RECAP: Trading Day Reminds us It’s All About Europe
