Posted To: MBS Commentary
Today’s pull-back really began yesterday, and involved stocks moving higher with bond yields Momentum continued through the overnight session for bonds, but stocks pulled back The divergence was sharpest after 9:30am, suggesting ETF-related selling Multiple motivations in play, but most are waiting on next week’s Brexit vote Yesterday morning marked a turning point for stocks, bonds, and various metrics that speak to Brexit-related anxiety. One of the easiest places to see that turning points is in British currency (Sterling) compared to US Treasuries. As you can see, Treasuries aren’t really taking the bounce as seriously. Brexit aside, Treasuries are also very far into their most recent momentum cycle, based on various technical measures. Some of those measurements are already…(read more )