MBS RECAP: Inconsequential Volatility Inside a Range

Facebooktwitterlinkedin

Posted To: MBS Commentary

Bonds began the day roughly unchanged and rallied in the morning hours along with European bond markets. Most of the volume was in before 9:45 and the remainder of the day's trading took place inside the range set during the preceding 90 minutes (effective, the first 90 minutes of domestic trading). That's the market's way of telling you it's tuned out. With the ECB having punted on their opportunity to address tapering, bond markets are at a bit of a loss when it comes to motivation. Normally, if a central bank was expected to say something about tapering and then said nothing about it, that would be a good thing for bond markets. Instead, ECB President Draghi said "nothing lasts forever," and further suggested that we'd hear more at the December meeting. Thus…(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