Posted To: MBS Commentary
Bonds are starting the day in roughly unchanged territory after trying to go on a stronger run in the overnight session. If the remainder of the week sees higher yields, it will be yet another example of the "false start" trend discussed yesterday . The only major data on the econ calendar this morning was Durable Goods. It came out much weaker than expected, but had effectively no impact on bonds. What's up with this? After all, isn't part of the problem for the bond market that the economy is bouncing back from covid-related suppression? While that is indeed generally true, it has less to do with the still-volatile data from the winter months and more to do with the bigger picture (which has already confirmed a return to normal ranges for most reports). Beyond that, the…(read more)