MBS RECAP: Stock Losses Reinforce Bond Market Opportunities

Facebooktwitterlinkedin

Posted To: MBS Commentary

Back on January 18th, stocks made it as high as they've been able to make it since early December. From there, they ebbed a bit and traded sideways for several more days before reapproaching those highs last Friday. Breaking above those highs would have been technically significant (i.e. it may have served as a cue for more positive momentum). With the temporary shutdown plan announced with only hours left in the day, that made this week highly uncertain . But rather than stampede up and over the overhead ceiling, stocks moved steadily lower overnight and then more sharply lower in the morning hours. Corporate earnings played a part as did oil price weakness and another downbeat speech from ECB President Mario Draghi. Bond markets didn't object, and soon found themselves back in positive…(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