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MBS RECAP: Trump Tax Talk Tanks Treasuries (and MBS)

Posted To: MBS Commentary

Today was shaping up to be very slow and boring, with bond markets making some inconsequential gains as traders shed risk ahead of this weekend's French election. How did France get important? In a nutshell, one of the candidates (Marine Le Pen) is billed as a populist who wants France to divorce the EU, or at least to work out some sort of separation agreement. Anything that calls the stability of the EU into question tends to be a big deal for markets. Brexit was one thing (because Great Britain was never part of the monetary union), but a Frexit would be a much bigger deal. We're not necessarily sure a Le Pen victory would result in France exiting the EU, but the mere possibility of such things has traders on edge. Markets are fairly sure LePen won't win, but they'd like…(read more)

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Source: Mortgage News Daily

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