Bonds were actually a hair stronger at the open, but quickly tanked just after 8am. The nature of said tankage is strongly suggestive of month-end positioning. While it's true oil prices are higher than Friday, the spike in bond yields didn't correlate in a manner typically consistent with oil being the driver. Also, there is a relatively sharp move underway in the yield curve (i.e. 2yr yields remain unchanged while 10yr yields are 5+ bps higher). Heavy curve trading in the absence of obvious catalysts and related market correlation all but confirm "month-end trading" (unless there's a huge corporate bond announcement that we missed).
Surprisingly Light Selling Given The Econ Data
Surprisingly Light Selling Given The Econ Data
Today’s market reaction to the big beat in NFP (162k vs 56k) certainly stretches the paradigm of most market watchers who’ve been in the game for more than a few y…