MBS RECAP: Data-Driven Rally Evaporates

Facebooktwitterlinkedin

Posted To: MBS Commentary

Today was largely the story of troublingly weak econ data prompting an rally to the best levels of the day for bond markets. The biggest move came in response to European PMI data overnight. France, Germany, and Eurozone PMIs were almost universally weaker with Germany's manufacturing sector defying already low expectations. European bond yields tanked in response and US yields followed. The rally extended just a bit after mixed US PMI data at 9:45am (weaker services sector, but manufacturing held its ground). Shortly thereafter, bonds began a steady selling spree that brought them back to unchanged on the day and ultimately into negative territory. Several Fed speakers were hitting the wires at various points throughout the day, but generally not adding anything new to last week's…(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