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Bond market moves show limited link to headlines or data

The overnight rally in longer-term bonds followed a shift in Fed rate expectations, but a later spike in oil prices also corresponded with a bounce toward higher yields.

Reported · Written up by our desk · Economy

Mortgage News Daily said Tuesday morning followed a pattern of overnight bond market moves that cannot be cleanly connected to specific headlines or economic data.

The outlet pointed to recent pressure that pushed yields up to multi-decade highs, alongside constantly shifting Fed policy expectations, as conditions that are likely to keep producing hard to explain overnight moves.

It added that, over the past several sessions, investors showed “organic” demand for longer-term bonds after treating 10-year yields around 5.3% as a possible entry point.

Mortgage News Daily said the overnight rally was linked to a shift in Fed rate expectations, while oil prices later moved in a way that corresponded with higher-yield momentum.

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