MBS Day Ahead: Limited Economic Data to Motivate Trade, but Massive Reasons Elsewhere

It has been the case for months that the European economy and monetary policy stance are big net-positives for US bond markets. I talk about it incessantly enough anyway. This is the first “big game” and yesterday it finally coaxed 10yr Treasuries out of the uptrend (in red below) that had been intact since late May. From there, the 2nd “big game” took over and carried yields all the way to the boundary of the counter-trend (in teal belo

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