MBS OPEN: Holiday Bond Rally Struggling To Survive
November 30, 2009 – 5:40 amPosted To: MBS Commentary
I can imagine that bonds stepped on the scale this AM much the same way as I did. Yes, the holiday's were good while they lasted, but things may be a bit too overweight this AM. If you weren't around for the rousing Friday that was, the main event was the Dubai Drama in which the country essentially couldn't pay it's bills on time. Given the billions of dollars on their tab, the debt markets sort of took notice--at least as much as they were able on a Black Friday. These next few longer term tsy charts show the flight to quality that ensued, among a few other things... 10 yr tsy yields Quite a lot of perspective offered here as we see the resistance and then THE RESISTANCE and though 3.0 feels a bit distant, perhaps it could then be THE RESISTANCE! In other words, yes, yields...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.