Posted To: MBS Commentary
Token Rally a Small Concession For Recent Selling Spree After 4 straight days of heavy selling pressure, bonds finally found their footing today. Pessimists took offense to the underwhelming size of the rally while optimists were grateful that it didn't end up being a 5th day of selling pressure. As for motivations, we don't have anything massively compelling and obvious. At this time of month/year, we can generally assume big money managers are adjusting trading positions and bond holdings as a part of the month-end index extension process as well as fiscal year-end. Other 'usual suspects' include safe-haven demand dur to stock market weakness, a smaller drop in week-over-week covid cases, and of course, technicals/momentum. Either way, we'd need to see bigger buying before…(read more)
Source: Mortgage News Daily
