It's a straightforward morning in the bond market. We're not seeing any of the sorts of "unseen hand" trading that accounted for the timing of yesterday's pre-market weakness. We simply have oil prices erasing about half of yesterday's rise. Bond yields are trying their best to be able to say the same, but they're not recovering quite as much as oil. It doesn't much matter. If anything, it's reassuring to see the correlation persist as it underpins the expectation that bonds are at least capable of a better recovery if oil moves back down to/toward June's levels. Econ data is very light. Volatility potential is down to any juicy news headlines or pre-weekend positioning.
Incidental Weakness. Bigger Considerations on The Horizon
Incidental Weakness. Bigger Considerations on The Horizon
Without any data or compelling market movers, bonds came into the day light on inspiration. Low volume/liquidity left the door open for any determined t…