Posted To: MBS Commentary
Bonds make token gains ahead of Brexit day Brexit poll and Treasury auction helped But trading levels are still well above “the gap” set on Monday Bond markets began the overnight session repeating a similar pattern from the first two days of the week. In this pattern US Treasury yields have opened at their best levels of the day and have held steady during Asian market hours. From there, the weakness has been creeping in during European trading hours with a token recovery during the morning hours in the US. Finally, the pattern wraps up with bond markets drifting into weaker territory by the end of the day. All of the days movement was on track for a repeat performance but the weaker drift during the second half of the day never happened. Moreover, 10yr yields seem to have found…(read more )