It would have been a lot to ask for bonds to continue rallying without any major justification after hitting 4.25% yesterday and after 50bp rally over the past 4 weeks.  That tall order grew even taller after the AM econ data, Fed comments, and OPEC news.  Each had a hand in pushing yields higher in the AM hours. 
The 8:30am reaction is the least interesting of the 3.  It looks more like a market that was holding out the possibility of weaker data and then simply didn’t get it.  The Fed comments and OPEC headlines were the morning’s biggest deal. Interestingly enough, no one at the Fed is saying anything new, but some traders are surprised there hasn’t been a more detectable shift in tone (i.e. some are still
The nice thing about this particular sell-off is that it is wholly inconsequential in the bigger picture.  In fact, it’s setting up to be classified as a modest token correction after a big rally.  Bigger revelations and market movement are more of a “next week” kind of thing.
 

Published On: November 30, 2023 / Categories: Mortgage News /