Posted To: MBS Commentary

There are no major events on the econ calendar today and no compelling market movers in play so far this week–at least not for bonds. Stocks, on the other hand, have earnings season as well as yet another moment to reflect on whether valuations have growth frothy enough to justify a pull-back, temporary or otherwise. On such weeks, it's not uncommon to see a more conventional stock/bond relationship. How much weakness in stocks would it take to make a big impression on bonds? Let's see… Actually, let's spoil the ending right out of the gate: the correlation between stock prices and bond yields has been fleeting, at best, in 2021, so it's not the sort of thing we should probably count on for bond market motivation, even though the past few days have had a more conventional…(read more)

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Source: Mortgage News Daily