Is Wednesday's Rally Enough to Turn The Tide?
Is Wednesday's Rally Enough to Turn The Tide?
Abstract
Is Wednesday's Rally Enough to Turn The Tide? 10yr yields began the day with overnight levels easily over 4.00%. It wasn't until the 6am emergency bond buying announcement from the Bank of England that yields began to plummet. While US 10s didn't quite enjoy the 50bp rally seen in British bonds in the first 40 minutes, we did manage to work our way down to a 20bp rally by the afternoon. While this COULD end up lining up with a bigger picture shift, that shift would ultimately need to be confirmed by other events. Today's video discusses these considerations in greater detail. Weaker at first overnight, but emergency Bank of England announcement bails bonds out at 6am. After a brief dip in the 10am hour, bonds are back near their best levels of the day as Treasuries chase the British bond rally. 875 and 10yr down 22bps at 3.731%..