In yesterday’s recap, we discussed the phenomenon whereby most of the market movement has been happening overnight during these Euro-centric times, with the US trading hours seeing comparatively less volatility. Same old story today, but more impressive!
Bond markets managed to shrug off THREE stronger-than-expected economic reports, including a revision to GDP that took Q2 up to 4.2%. Yet not only did that data never materialize into selling pressure, but neither did the rest of the data or stock market gains.
Fannie 3.5s traded a fairly narrow range and never dipped into negative territory. They’re heading out an eighth of a point higher. The scariest dip happened heading into 2pm, but bonds bounced back. There was brief, modest reprice risk at the lows today.