MBS Day Ahead: Bonds May Not Even Want to be Inspired Just Yet


Posted To: MBS Commentary

To say that bonds have been range-bound recently would be an understatement. I'm running out of ways to say it, and perhaps you're running out of the desire to read the same news on a different day. So let's change things up just a bit and bring stocks back into the mix. First off, stocks have really gone out the window in terms of explaining bond market movement as the year has progressed. This is in stark contrast to the beginning of the year when we couldn't stop talking about the major stock sell-off (and major correlation with falling oil prices and bond yields)–especially during January. Let's take a look at how 2016's stock/bond relationship has played out in the context of that late-2015/early-2016 relationship. The following chart is scaled based on the highs…(read more)

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