Near Best Levels in a Month as Peace Deal Materializes
Although at least one article (from BBC) suggested a peace deal had been signed on Friday, the real word appears to be that a signing is scheduled for Friday. That fact, along with comments on a "done deal" from both sides, helped bonds rally sharply in overnight trading. 10yr yields dropped roughly
Bonds rally as Iran peace deal, FOMC loom large
AD Mortgage's head of correspondent business development writes that an Iran peace deal sparked bond rallies ahead of Wednesday's FOMC meeting.
To shrink the balance sheet, Fed must move past 2019 fears
Balance sheet reduction is a top priority of new Fed Chair Kevin Warsh. Achieving that goal means avoiding the kinds of disruptions that roiled the Treasury bond market in 2019, the last time the central bank embarked on quantitative tightening.
Pamela Heman
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