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MBS RECAP: Even if Bonds Weren't Ignoring Data, They'd Still Be Confused

Posted To: MBS Commentary

The bond market has a lot on its mind right now. 2019 is proving to be very different from other episodes of big, protracted rate trends. In most past instances, we can point to 1 key theme driving the momentum, with a few occasional supporting actors. Things are more complex and nuanced this time around as the usual suspects for rate inspiration seem to be taking turns in the driver's seat. This week (and perhaps last week, to some extent), Brexit is definitely in control. News of a new potential deal hit bonds overnight, but we bounced back after subsequent news that it would have a hard time getting enough votes to make it through Parliament in a special session this Saturday. Much of the brexit-related volatility was playing out right as this morning's economic data hit. Was this...(read more)