MBS RECAP: One-Two Punch From Trade War Bounce and Treasury Auction

Home / Blog / MBS RECAP: One-Two Punch From Trade War Bounce and Treasury Auction

Posted To: MBS Commentary

First thing in the morning, it looked like we had a chance to see another trade-war-driven bond rally. A Reuters story that detailed the US/China communication breakdown hit the market around 4:30am, causing both stocks and bond yields to move quickly lower. But by 7am, investors signaled they'd had enough. There's only so much markets are willing to brace for when the worst case scenario is something that will play out in gradual fashion. In other words, the worst case scenario is a gradual knock to global economic growth due to trade barriers as opposed to something like a change in central bank policy that has an immediate impact and a quantifiable implication for future cash flows. Markets are thus better-served to react to such things gradually . The best case scenario, however...(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.mortgagen...

39e73a9d b762 45a1 8ae6 d8f7efcac77a a9d3c386 1cb7 416c 9d69 8a959f20545f 5a371bf6 f04d 4bd2 abe4 4f987e83ee62 be0dfcab 8c87 4516 929c e3c371df8de9 15c61b5f c8ee 4a23 8337 560fa845e483 0018eb52 47c1 4f95 962d fc11b935d36e 90bbcdbc 0f80 4a42 a6fc dc058118b862 b3caf0c2 254e 4a11 8efc 5c5a9e5bf1b9 2319206b 4524 42a1 9a0b 60a72f4ff6f0 dfaf4f5e be2f 472c a2b3 f91ce91c0e79 108e19cc 360e 4559 807f 1040c2f1467a e4d0b090 c96f 440f a87e 0a1f454ddb26 988f8e97 5ae1 49b5 9985 4d1e3b013cd8 fa47c512 dbad 45ed b8b4 2d41b70fd23f 8d37582c 4285 4c3d a423 4fdf0f396339 55d8d8f4 2763 4bff aad4 47752d58ae5c 56fd9ea0 27c8 42e7 b9c1 de8959620f34 1ee3b50a bffd 49f2 bac2 33176b1fef5a dd76271b 85e3 446a 9da7 f47a251193c1 285a582a 5e3b 4688 aba4 3d4b9f4fff0d 656bf2e8 7c1a 456e 843b a5badc18b3a3 31b59596 856a 4ccc 9b3a ae3eec3793b8 9de13258 e90d 4796 a648 14644df2e724