Tuesday, November 19, 2013

For the stock market geek in all of us!

I can't make this stuff up.

Overnight, the market sold-off led by 5s and 7s after the German Zew Survey came in strong.

In the U.S., the market is down slightly and the belly continues to underperform with 2s10s 1 bps steeper while 2s5s is 2 bps steeper. MBS put in a strong showing yesterday as a lack of supply coupled with continued Fed buying left the Street short bonds and took the belly 4 tics tighter. Today, current coupons are another 2 tics tighter and there isn't any economic data to digest until tomorrow.

What did I get out of that?

Some family went to the Berlin Zoo and counted the animals 2 x 2. Because it cost so much, there is belt tightening. Unless they have some coupons for fast food, they will be hungry tomorrow.

That could be Major Bull Shit.

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