MBS RECAP: Bonds Keep Running The Table Without Much Motivation

Posted To: MBS Commentary

Bonds Keep Running The Table Without Much Motivation The absence of overt, discrete motivation is one of the most interesting facets of the bond rally over the past few weeks. If anything, the overt/discrete stuff has made stronger cases for bond market weakness (i.e. high inflation reports and weak auctions). This speaks to a bigger picture shift in market psychology and has given way to more technically-motivated trading. Today also saw a good amount of influence from the corporate bond issuance process (and a surprising absence of influence from Fed Chair Powell's 2nd day of testimony). Net/net, yields closed down 5bps, right in line with the next technical level on our list (1.30%). We're not eager to bet against a bond market that's been so willing to rally, but nonetheless…(read more)

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