MBS MID-DAY: Bonds Hit Hard By China's Surprise Rate Cut

Hot news from AZ Home Help:

Posted To: MBS Commentary

Bond markets are in weaker territory today, more than erasing all of yesterday's gains and taking 10yr yields to the highest levels in 2 weeks. The key culprit is the surprise rate cut from the PBOC (People's Bank of China). In the chart below, notice how stocks and bonds were trading fairly flat, and how volume in Treasury futures was relatively absent before the news. The second surge of volume and weakness arrived at 8:20am, which is not an uncommon time of day to see such surges in these circumstances. Specifically, when overnight data is the key market mover and when there's nothing significant on the domestic calendar, the traders that rely on the Treasury pit being open at the CME play a more active role in determining where rates go (and the pit opens at 8:20am). In addition...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/522056.aspx

- For more real estate news visit our website at http://www.AzHomeHelp.com