MBS Day Ahead: Bonds On The Run

Facebooktwitterlinkedin

Posted To: MBS Commentary

Paul McCartney will only be signing about "bonds on the run" if he's in the market for a mortgage, because bonds are running in the wrong direction. This morning's US economic data is already out, and it did little to stem the tide of selling that was already in place from the overnight session. Fittingly, on a day with an allusion to a British singer in the headline, it was largely British drama (lack thereof, really) that kicked off the overnight weakness. The lack of drama comes courtesy of stronger UK GDP, which in turn leads traders to say things like "what were we thinking betting so heavily against the UK after Brexit?" Point being: an absence of a hard landing for Britain and the EU mean traders bought too many bonds this summer, and thus rates need to correct…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons