[Overseas Property Forum NEWS] Stocks and Bonds Sideways at Best Levels of Day in Quiet Marketplace. Reprices Possible

Stocks and Bonds Sideways at Best Levels of Day in Quiet Marketplace. Reprices Possible

Posted To: MBS CommentaryThe 10 year note, the FN 4.5, and stocks are all coiling up near their best levels of the day I called attention to early morning weakness in stocks as a source of stability in the bond market today. This is occurring at a time when one would expect traders to be taking advantage of an opportunity to price in a supply concession ahead of $118 billion in front-loaded debt. Specifically $44 billion 2 year notes tomorrow, $42 billion 5 year notes on Wednesday, and $32 billion 7 year notes on Thursday. Read "concession" as: the street or dealers looking to cheapen up prices so its easier to sell new inventory at a profit after the auction process On the other hand, the bond market did a pretty darn good job of cheapening up the curve last week. That concession might be acceptable enough...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

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