Posted To: MBS Commentary
Bonds continued holding ultra-narrow post-Brexit range until 3pm At that point, Treasuries spiked aggressively and MBS eventually followed Initial culprit was likely the Oracle corporate bond issuance Markets knew this was coming, but they didn’t know when or how big It was sooner and bigger than expected, thus putting pressure on other parts of the bond market and adding to snowball selling momentum If you like to click links and learn more about the bigger picture bond market motivations, and if you haven’t already read it, check out our primer on corporate bond issuance HERE . If you’re not into clicking links, just think about corporate bonds like any other bonds. They cost money and offer a return on investment. They’re a bit riskier than risk-free Treasuries in the best…(read more )