Although at least one article (from BBC) suggested a peace deal had been signed on Friday, the real word appears to be that a signing is scheduled for Friday. That fact, along with comments on a "done deal" from both sides, helped bonds rally sharply in overnight trading. 10yr yields dropped roughly 6bps and have corrected gradually since then. Yields remain nearly 4bps lower and MBS are starting out nearly a quarter point higher.
Some Bond-Specific Weakness in The Afternoon
Some Bond-Specific Weakness in The Afternoon
Oil and Treasury yields were almost perfectly correlated for almost the entire week. Friday afternoon was an exception. Oil continued sideways to slightly lower whil…