Big Gains Intact After Huge Intraday Swings

Big Gains Intact After Huge Intraday Swings

Bonds had 3 fewer hours to trade on Friday, but ended up covering by far the most ground of any day this week.  The rally was extreme in the moments following the US ISM PMI data, but had already covered a lot of ground due to overnight PMIs (and other data) in Europe.  Long story short, cracks are showing in the global economy, inflation expectations are ebbing, and rates may be realizing they were a tad defensive in June.  Of course all of the above will require vetting from additional data in the near future, and that's likely why the rally was quick to correct itself after 10s had dropped by more than 20bps.