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Heavy Selling in Stocks Providing Small Boost For Bonds
Heavy Selling in Stocks Providing Small Boost For Bonds
It doesn't always work like this, but today's overnight session saw the classic "conventional wisdom" trade with stocks prices and bond yields falling in concert. Believe it or not, this is the exception these days. In fact, since late May, stocks and bonds have generally been rallying together. Contrast that to the conventional wisdom trade in which one is losing while the other is winning. These days, it tends to take quite a lot of stock selling to prompt a spillover into bond buying. By that same rationale, it only takes stocks finding their footing for the bond rally to find resistance--something that looks to be happening over the past few hours.
modestly stronger overnight and holding gains so far. MBS up 2 ticks (.06) and 10yr down 1.4bps at 4.095
Sideways near best levels. MBS up an eighth and 10yr down 2.6bps at 4.083
Light Volatility After Initial Losses
| Time | Event | Period | Actual | Forecast | Prior |
|---|---|---|---|---|---|
| Tuesday, Nov 04 | |||||
| 6:35AM | Fed Bowman Speech | ||||
| 8:30AM | Aug Trade Gap (on hold, shutdown) (bl) | Aug | $-60.4B | $-78.3B | |
| 8:30AM | Sep Trade Gap (on hold, shutdown) (bl) | Sep | |||
| 10:10AM | Nov IBD economic optimism | Nov | 43.9 | 48.1 | 48.3 |
| 10:30AM | NY Fed Treasury Purchases 10 to 22.5 yrs (%) | $50 million | |||
| Wednesday, Nov 05 | |||||
| 7:00AM | Oct/31 MBA Purchase Index | Oct/31 | 164.3 | ||
| 7:00AM | Oct/31 Mortgage Market Index | Oct/31 | 338.7 | ||
| 7:00AM | Oct/31 MBA Refi Index | Oct/31 | 1327.8 | ||
| 8:15AM | Oct ADP jobs (k) | Oct | 25K | -32K | |
| 9:45AM | Oct S&P Global Services PMI | Oct | 55.2 | 54.2 | |
| 9:45AM | Oct S&P Global Composite PMI | Oct | 54.8 | 53.9 | |
| 10:00AM | Oct ISM Services New Orders | Oct | 50.4 | ||
| 10:00AM | Oct ISM Biz Activity | Oct | 49.9 | ||
| 10:00AM | Oct ISM N-Mfg PMI | Oct | 50.8 | 50.0 | |
| 10:00AM | Oct ISM Services Employment | Oct | 47.2 | ||
| 10:00AM | Oct ISM Services Prices | Oct | 69.4 | ||
| 10:30AM | Oct/31 Crude Oil Inventory (ml) | Oct/31 | -6.858M | ||
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