Posted To: MBS Commentary

The Retail Sales report is generally considered to be in the upper echelon of economic reports when it comes to bond market impact. As such, it’s somewhat surprising to see bonds reacting negatively to a weaker-than-expected number. But traders have their reasons. These include a few bigger trades from bigger firms who were expecting an even weaker result in the data. In turn, those trades provided leadership for more impressionable market participants. They also helped yields crest the 1.25% technical level, thus resulting in some additional upward momentum. Before breaking above 1.25%, 10yr yields bounced at 1.225 early this morning (1.217 overnight). These levels are in line with the “gap” from February, which many traders viewed as a technical target for the summertime bond…(read more)

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Published On: August 17, 2021 / Categories: Mortgage News /