Role of Bonds Role of Bonds
Monday, October 28 2024, 5:16 pm
Role of Bonds Role of Bonds
One more week and another chance to do the only thing bonds seem to know how to do these days: sell. In fact, this morning’s conclusion didn’t seem foreseeable. Bond prices fell only slightly overnight and managed to move back into positive territory in the first hour and a half of domestic trading. This was followed by a consistent directional sell-off for the rest of the morning. A combination of financial auction indigestion and ongoing pre-election positioning could be widely blamed, but the normal level of lag between a single big-ticket data release or news headline and market movement is likely to be widely blamed. Without a correlation, most assessments would be taken with a grain of salt. That is, “What moves the market?”
9:16am
Although it weakened overnight, it quickly rebounded. MBS rose one tick (.06) and the 10-year fell 1.2 bps to 4.23.
11:05am
MBS is down two ticks (.06) overall and five ticks (.16) from its high, its weakest level of the day. 4.263, up 2.1bps in 10 years
12:30pm
MBS fell 7 ticks (.22) to 4.289, up 4.7 bps over 10 years.
2:54 p.m.
It comes off the weakest level. MBS fell 5 ticks (.16) and 10-year rose 3.3 bps to 4.275.
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