MBS RECAP: Surprise Snowball Rally as Stocks Swoon Over Global Risks

Surprise Snowball Rally as Stocks Swoon Over Global Risks When it comes to stocks vs bonds, pundits generally give too much credit to one side for movement in the other. In fact, on days with big movement in both markets, it's not uncommon to see stock people blaming the bond market and bond people blaming the stock market. In today's case, the bond rally wasn't even in the same league as the bond sell-off, and the latter was clearly the flag-bearer for a broad risk-off rally that offered solid support for bonds. It remains to be seen how long the stock swoon continues as there is some disagreement about whether the Evergrande drama deserves as much credit as it received today. Either way, bonds simply endured an in-range correction, and they remain more susceptible to Wednesday's...(read more)

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