The Smart Team of NOVA® Home Loans

MBS RECAP: Europe Convinces Bond Rally to Take a Break

Posted To: MBS Commentary

There are a lot of pieces on the board at the moment for the bond market rally that's been intact since mid-March. That rally began with a friendlier-than-expected set of Fed rate hike forecasts, but the baton was quickly passed to political drama and geopolitical concerns (healthcare bill, Syria, North Korea, French election, British general election, etc). Over the past few days, we've seen the US-related issues fade to the background while European issues have taken the spotlight. Yesterday it was British PM May's call for an accelerated general election that hurt EU stocks and helped bonds. Today it was a partial rethink of yesterday's gut reaction combined with several other factors (increased supply, strong data, French election forecasts) that pushed European markets…(read more)

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Source: Mortgage News Daily

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