Posted To: MBS Commentary
Today's big to-do was a paradoxical bond market rally in response to a much stronger-than-expected jobs report. This wasn't just a case of a compelling behind-the-scenes headline or event stealing the spotlight from the established data. No… markets were obviously ready to make this trade even before the data came out, and were just waiting until the data hit to pull the trigger. There are certainly clues elsewhere in the financial market. For instance, the same forces that tend to push rates higher after a strong jobs report also typically push stock prices higher. But there, too, we see a paradoxical decline after the data. This offers one of our best clues as it basically suggests financial markets are shying away from future risks and nothing about those risks will be mitigated…(read more)
Source: Mortgage News Daily
