Posted To: MBS Commentary

When the World Health Organization declared coronavirus an international health emergency yesterday, there were two schools of thought. At first glance, it should have been good for the bond market as the announcement seemed to indicate things were getting worse. But bonds fairly quickly began moving in a counterintuitive direction. The only explanation at the time was that the declaration paved the way for the international community to more effectively combat the disease. The only other explanation was that traders were using that news as cover to get early month-end trading accomplished. We closed out the day yesterday without a clear answer, but that changed in the overnight session as bonds gained ground steadily. By the time the stock market opened, we were already on a roll. Then the…(read more)

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Source: Mortgage News Daily