MBS Day Ahead: First Econ Data of The Week, But Bonds Have Bigger Concerns

In the day just passed, bonds put in their second biggest rally day of the past 3 weeks (the crazy ones) and their biggest rally day since yields bottomed out last week. Strikingly, there was no major singular reason for the move, unless we wish to speak in generalities such as "global growth concerns." Still, that probably doesn't quite capture the essence of bond buying motivation as it relates to yesterday's trading session. In the day ahead, we'll be treated to the week's first economic data in the form of the Consumer Price Index--an inflation report that has managed to be a big market mover at times in the past. The market movement potential is significantly lower at the moment, however. There are a few reasons for this. The first is those proverbial "global...(read more)

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