MBS RECAP: Stock Lever Strikes Back (In a Good Way)

• European bonds did not lead the way lower for a change
• But European (and domestic) stock markets sure did
• 10yr yields fell 3.1 bps to 1.613 as S&P dropped nearly 20 points 
• Fannie 3.0s gain 3 ticks to close at 102-31

Bond markets had a good day today, and without the help of European bond markets for a change.  "Help" could be a relative term though, considering European rates remained very close to all-time lows.  Treasuries, on the other hand, managed to gain some ground, largely with the help of heavy stock losses around the world.

There were no significant economic reports today and the only apparent market mover was an updated Brexit poll showing a slightly higher probability of Great Britain leaving the EU.  We can't really assume that was the full story, however, because there was not a corresponding move in currency trading (which would have been a dead giveaway).  

The only other overt development at the time was the closing bell for European equities markets and a drop to the lows of the day in domestic equities markets.  As such we can give a nod to the good old 'stock lever' as a market mover today, even if we can't, and shouldn't, assume it will continue to be a market mover.