If you happened to tune in for today’s mid-day commentary, that was essentially the recap for today. But who likes opening links? So here’s another version:
The day began with overnight gains led by European bond markets. Early domestic traders booked profits heading into the 8:20am Treasury ‘open’ (CME pit trading start time, and the first trades of the day for several classes of bond traders). Those traders began pushing yields back down (or MBS prices back up) and were soon given a helping hand from the weaker economic data.
But it was really the hefty losses in oil prices that dominated the day (and perhaps the entire week, for that matter).
It was with this chart in mind that I said I would like to see bond markets picking up a bit more ground here, given the 2-day losses in oil and stocks. One has to wonder where we’d be if everything else was holding steady.