The rate rise in the ECB has been pressuring the Bund market -- all of the European bond market is down at this point -- and that is starting to push its way into our bond market. |
The three-year was a great auction...but it just doesn't matter that much to the market. The next key piece of information really is how the Fed phrases the statement (on the U.S. economy, which it habitually makes after policy meetings). |
The weakness in the stock market, the fact that the charts and trends look so bad, is going to keep an underlying bid under the bond market. |
There's nothing positive to be said about it. What's happening now is foreigners are looking to buy higher yielding paper, including agency and corporate debt. |
Those that thought the central-bank buying would not be there for the auction have been proven wrong. |
Up until the last employment report I thought for sure they were going to wait until August, |
We all know the housing market is slowing, and people are blowing this housing data off a bit. |
We definitely felt like we had something to prove after we lost down at Bandon. We came out really weak there and they just jumped all over us. But we knew we had to come out with a fast start, and that's exactly what we did. |
We have been hearing various rumors today about bad positions. The last one deals with a convertible (debt) desk at a major primary dealer imploding. This continues to be a catalyst for the buying of Treasuries. |
We have seen some reallocation out of equities into bonds this afternoon. |
We're praying for rain and snow and anything else that can cause a problem. |
When you play this badly in a big tournament, you don't want to do it again. All we can do now is try harder to improve at district. |