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Bond sellers were active at the CME open despite oil drop
Mortgage News Daily said bond weakness came even as oil prices fell, with traders also positioned ahead of the 10:00 a.m. ET JOLTs data.
Mortgage News Daily said bonds were modestly stronger overnight but traded mostly flat into the 8:20 a.m. CME open, when bond sellers appeared to be lined up to sell.
The outlet linked the behavior to the possibility that month or quarter end positioning is contributing to the week’s volatility, while also noting traders may be taking a more defensive stance ahead of high-stakes economic data scheduled for the day.
Mortgage News Daily said the day’s bond weakness also ignored a fairly substantial drop in oil prices, and it expected more clarity after the 10:00 a.m. ET release.
The report specifically pointed to JOLTs as the most pressing economic indicator coming up at 10:00 a.m. ET.