MBS Morning: Bond Traders' Game Plan: Sell First, Ask "Why" Later

Posted To: MBS Commentary

Momentum, macroeconomic considerations, and Fed policy continue to dominate the bond market since last Thursday as traders are swept up in the widespread repricing of risk. While the Fed announcement was at ground zero, it's not the only game in town. Covid numbers are increasingly coming up in trader/analyst commentary. Beyond that, technicals and momentum are exacerbating what otherwise might have been a more orderly sell-off. Volume is very high (as is always the case when we throw around terms like "widespread repricing of risk") and we have yet to see compelling signs that buyers are stepping in to stop the bleeding. There's a possibility that buyers show up after today's key events, the 7yr Treasury auction and Fed Chair Powell's congressional testimony. That…(read more)

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MBS Morning: Bond Traders' Game Plan: Sell First, Ask "Why" Later
MBS Morning: Bond Traders' Game Plan: Sell First, Ask "Why" Later

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