MBS RECAP: Bonds Catch Breath After Yesterday’s Scare


Posted To: MBS Commentary

It's hard to say whether yesterday's heavy selling in the bond market was acting alone or whether it was in response to the heavy buying seen on Tuesday. Today's gains suggest the latter, with the common thread being that the market is paying attention to political developments. On Tuesday, it would have been the impeachment talk that helped bonds rally. Yesterday, it would have been the release of the Ukraine call transcript (which the market viewed as falling short of acting as damning evidence). And now today, the impetus for the rally could be the congressional hearing on all of the above, which leaves the urgency of the political situation in a more ambiguous state. If I had to vote right now on how much all of the above matters , I'd say "not as much as it seems."…(read more)

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