Posted To: MBS Commentary
Bond markets returned to something of a middle ground yesterday after recovering from a Greece-inspired risk-off trade . Last week’s key event was the inability of Greek political parties to sign off on austerity measures needed to send the current bailout to vote. This Wednesday’s repeat Eurogroup meeting is made possible by Greece’s approval of austerity measures over the weekend, and whether or not Greece receives their current tranche of the proposed bailout will finally see a vote. All this ushered bond markets in the door moderately worse off than Friday’s latest levels to begin the current week, but the skepticism was palpable. Not only did the bond market sell-off not ever materialize into anything truly ugly, but Greece lent fixed-income bulls a helping hand mid-day after rumors started…(read more)
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