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MBS RECAP: Big Bad Day; Yes, Trade Headlines Still Matter

Posted To: MBS Commentary

It was a big, bad day for the bond market, although the size of the thing ended up getting pared down just a bit in the afternoon. Chalk that up to a counterpoint headline that pushed back against the narrative created by the day's previous headlines. The narrative in question concerns the US/China trade pact. Most recently, the notion of rolling back previously announced tariffs has taken center stage. Overnight headlines set the tone with China's Commerce Minister saying the two countries had agreed to cancel tariffs in different phases. Similar headlines from the White House added to the same momentum during the AM trading hours. Combine that with a bond market that was already on edge in terms of the technical landscape (you know... all that stuff I've been talking about with...(read more)