MBS RECAP: Huge Market Movement. No Market Movers

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Posted To: MBS Commentary

There were no market movers in play today. I'm not trying to be funny or clever. There were no market movers- -at least not in the traditional sense where something happens and markets respond due to the implications of the thing that happened. There were only compulsory trades and byproducts of those trades. These are like the forces of nature when it comes to bond markets. Whereas last week's CPI data and Fed Announcement were like giant wind machines clearly responsible for the breeze we were feeling, today's hurricane grew and evolved from weather that was already set in motion. In other words, nothing about today caused the sell-off other than today was when it happened. We saw the first evidence of a " tradeflow-motivated " sell-off at 8:20am. There were no headlines…(read more)

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