MBS Week Ahead: Bonds On The Operate As Brexit Hopes Continue being

Posted To: MBS Commentary

Previous 7 days observed the US bond market combat off an intermittent barrage of weakness as world wide markets geared up for the weekend&#039s large Brexit vote. By Friday, 10yr yields have been only 2bps higher on the 7 days. This left them just inside the longer-time period consolidation sample we&#039ve been pursuing (in the chart under), but at threat of breaking out dependent on the response to the weekend&#039s activities. We anticipated two of the 3 feasible results (Brexit offer authorised or delayed) to be negative for bonds whilst only the longshot result (no-offer Brexit with no request for extension) would have been great. As anticipated, British lawmakers opted for the middle route by foregoing a vote on the present-day Brexit offer and as a substitute forcing Key Minister Johnson to request an extension from the EU. The bond market reaction…(examine far more)

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