MBS Day Forward: Bonds Wanting For ISM Spillover. What's That?
Posted To: MBS Commentary
In the working day just passed, bonds extended a faster-paced rally that started on Tuesday following the ISM Producing details. It wouldn't be reasonable to say that traders woke up and mentioned to by themselves “you know what? I consider I'm going to obtain some additional bonds now since of yesterday's information!” Instead, the bond sector appeared articles to hold continual until eventually the stock sector started tanking. I offer you recurrent reminders about how stock costs and bond yields are not joined at the hip, but when shares are losing sufficient ground, we nearly always see bonds step in to take in some of the panicked income trying to find the sidelines. That's precisely what took place yesterday and precisely why the correlation was strongest when shares ended up the least expensive. It was a basic flight to basic safety. In the working day forward, we…(study additional)