MBS RECAP: Huge Bounce in Shares Not So Very good For Bonds

Posted To: MBS Commentary

Bonds had a rotten working day, mostly simply because stocks had an amazing working day (even though the terrible 5yr Treasury auction didn&#039t help). In switch, stocks mostly had an amazing working day simply because they had a rotten working day on Monday. Seemed at a different way, in 7 days-in excess of-7 days phrases, the S&P is approximately two% larger right now–one thing that has transpired to one in four weeks in 2018. Caveats apart, and vacation trading realities notwithstanding, there are a couple of motives to be cautious about this specific move. Very first off, in outright phrases (not percentages), now&#039s stock gains were the finest at any time (Dow, S&P). Quantity was almost as large as final Wednesday&#039s Fed working day. That indicates some buyers may be lurking and waiting around to get back on-board with stocks as before long as they sense the This fall-2018 dip is in excess of. Beyond that…(examine extra)

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