Posted To: MBS Commentary
Bonds bounced back as month-end buying hit its stride Second wind came from Bank of England comments on likely stimulus Yields bounced higher after Europe closed, but held same general range from past 4 days If we take a look at everything that’s happened since bonds began their big sell-off yesterday afternoon, it all ended up being a wash by the end of today’s trading. A chart illustrates the point: In arriving at this flatness, there have been a few notable players. Treasuries began moving lower in yield of their own volition in the morning hours but leveled off when European bond markets began to weaken. That didn’t last long as the head of the Bank of England said that he expected the central bank would need to provide stimulus over the summer. Sterling (British currency),…(read more )