Posted To: MBS Commentary
Bonds rallied on rate-friendly press conference from European Central Bank Gains subsided as Europe closed Bounce in oil and stocks may have contributed Bonds pushing stronger side of recent mini-range There’s the big-picture range of 2016 (the consolidative “triangle” of lower highs and higher lows) and then there’s the more recent “micro range” that has persisted since the Fed Minutes released 2 weeks ago. That smaller range runs from roughly 1.81 to 1.89% in terms of 10yr yields and it has come under attack over the past two days. That sounds more dramatic than it is though. Long story short, rates are simply favoring the lower end of that range heading into NFP. Reasons for that include the waning likelihood of a Fed rate hike in June–the Fed wants to wait to…(read more )