Posted To: MBS Commentary
Brexit leads European panic European panic leads bond yields lower Europe gets their fill just after 10am and markets reverse US bond markets bounce back after European close Consumer Sentiment inflation expectations helped extend the rally just a bit Be it Brexit fears or “global growth concerns,” panic is in the air. Panic has driven European yields to all-time lows for the past 4 days. It has also pulled US bond market volume higher for the past 3 days. Just today, it deposited 10yr yields at their lowest close in more than 3 years. For what it’s worth, you’d really have to go back to the summer of 2012 to see meaningfully lower rates. Big banks and big investors have been raising the alarm in various ways (research reports, public statements, CNBC phone calls, etc.) about…(read more )