Posted To: MBS Commentary

In the past 48 hours, bonds have entered into one of those interesting rally patterns marked by a striking absence of conventional motivations. That is to say, unless we consider these gains to be some sort of "follow-through" from last week's jobs report, there's no other economic data or news headline clearly behind the move. That forces us to move on to more speculative explanations. The usual suspects at times like this include short-covering , technical triggers, and repositioning ahead of tomorrow's ECB announcement (and even next week's Fed announcement). While it's true we could lean on the notion of the economic data failing to reach "scary strong" levels, that would require wearing blinders around a few of the recent reports. It probably makes…(read more)

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Source: Mortgage News Daily