Stocks represented the driving force behind market movement today after they dropped a full percentage point from morning levels. As a general rule, MBS largely ignore equities unless they move more than a quarter of a percentage point, and today was no exception. No one reason for the dip stands out, but the general consensus is that it was a risk-off brought on by a plethora of tweets (Twitter tweets, not bird tweets) suggesting the presence of Chinese military vehicles in Hong Kong. The tweets coincided with an official statement from Hong Kong leadership warning that protestors occupying government buildings would be subject to “serious consequences,” which led MBS to gain about 15bps and break even with yesterday’s high after they opened at negative levels. Prices dropped over the course of the afternoon, however, following a somewhat disappointing ECB announcement in which Mario Draghi made no mention of steps toward quantitative easing in the EU. Ceci Babcock Position Trader Opes Advisors, Inc.
Posted on: Thu, 02 Oct 2014 23:01:54 +0000