Surprisingly Resilient as Range-Finding Expedition Continues
Surprisingly Resilient as Range-Finding Expedition Continues
Abstract
Treasuries ultimately made it back into positive territory, and MBS were close enough. This was a surprisingly strong showing given the bumpy 7yr Treasury auction and the ongoing uptick in oil prices. One of the only ways to make a case for the recovery is via the sharp selling seen in equities (S&P down 2%). Weaker consumer confidence data is part of the same narrative (one in which traders are balancing the risks of recession against the Fed's inflation fighting resolve. Weaker data is. traders are weighing the risks and inflation fighting resolution. The market is one in which investors are balancing risks of Recession against theFed's inflationFighting resolve.