MBS Week Ahead: Bonds Begin Week With an Upbeat Signal
Posted To: MBS Commentary
The ability of the bond market to defy the cues seen elsewhere in the financial market has been relatively impressive over the past few weeks. It could even be a bit puzzling, at times. Specifically, global financial markets freaked out about coronavirus. Stocks and bond yields fell abruptly. Coronavirus case count growth then stopped accelerating and financial markets began to move in the other direction. This was especially true for the US stock market, and I would go so far as to say "mostly true" for Chinese equities markets. But bonds generally continued calling those bluffs. As a new week begins, those bets look a little less reckless, and any additional gains would make them look downright prescient. Bonds are leading the charge because, unlike stocks (which can follow flights...(
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