MBS Day Ahead: Dearth of Data as Bonds Wait For Weekend Events

Posted To: MBS Commentary

It remains to be seen whether all the hype is justified, but for whatever reason, markets are transfixed by this weekend's French election. Several recent polls indicate that Marine Le Pen has no chance while several other polls suggest it's too close to call. If Brexit and the US election are any clue, it's probably best not to get too wrapped up in what the polls say. All we know is that it's a close race and that markets are seemingly ready to react. If Le Pen wins, the ostensible reaction will be good for bonds and bad for stocks because she's seen as a potential risk to the long-term stability of the European Union. It's not her political agenda, but simply the fact that she'd be another success story for global populist sentiment– not exactly what the EU needs…(read more)

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Source: Mortgage News Daily

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