the implied S&P open is now down 12.52 and the 10 yr treasury is down 5 basis pts to 2.18. Europe dropping sharply as well. All this portends a 'flight to safety' in US Treasuries. Head of USB bond trading is predicting that the 10 yr could rally back to 1.80 or lower. Agency MBS prices will follow suit and Mreit BV's start climbing reversing the trend since mid-May.
equities have felt toppy here for the last two or three weeks or so... Feels like the overdo correction is coming in this week... Meanwhile fixed income and Mreits are yielding much more than they were a month ago... The move seems pretty simple.