What's Up With Monday's Weakness?
By:
Matthew Graham
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What's Up With Monday's Weakness?
Bonds were moderately weaker on Monday and not in a way that was obviously connected to any of the potential scapegoats. We know that there was selling in the EU bond market overnight and while U.S. yields correlated with much of that move, that correlation broke down precisely when an EU-driven move would have been most relevant. It's easier to blame an ongoing recovery in the tech space even though there's a similar lack of elegant correlation between tech stocks and bond yields. Bottom line: Treasuries benefited from last week's moments of highest concern surrounding the tech sector. Since then, when those concerns have been anything less than dire, bond yields have cautiously drifted higher.