MBS RECAP: Bonds Looking Nervous and Impressionable


Posted To: MBS Commentary

Let's face it. It makes sense for the average bond trader to be more indecisive than normal right now. A no-deal Brexit was avoided this week (bad for bonds), but a Brexit deal couldn't make it through British parliament in time to beat the EU's deadline (good for bonds). Economic data hasn't been too strong (good for bonds), but it hasn't accelerated into weaker territory, for the most part (bad). There's still no US/China trade deal (good), but progress is apparently being made in that direction (bad). Away from actual events and data, we could do a similar song and dance with tradings levels and trends. For instance, yields have been trending higher for 3 weeks (bad), but they have yet to move back up to the mid-September highs (good). Momentum metrics have been oversold…(read more)

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