Most of The Bond Buyer’s weekly yield indexes rose this week, as several weeks of permeating market firmness began to reverse and some weakness appeared.
“It’s full speed ahead until you run into a brick wall, but guess what just happened, beginning two or three days ago?” said Fred Yosca, managing director and head of trading at BNY Capital Markets Mellon. “There’s absolutely nobody buying any bonds, and there’s a bunch of dealers sitting around wishing somebody would, and hoping someone will relieve them of some inventory. So you’ve seen a lot of bid-wanteds, and very little support on the bid side. The market got so high it was completely unsupportable, and we were overdue for a correction, and it may be upon us.”