George Goncalves
George Goncalves
normally push rates supply traders
Traders normally try to use the supply story to push rates higher.
bigger direct energy impact oil people prices shoot thinking
People were thinking that, if the oil refineries take a direct hit, energy prices would shoot up and it would have a bigger impact on the economy.
increase mostly portfolio rich securities super type using
Mortgages were super, super rich in February. It made sense for them not to increase their portfolio using mortgages, but they did increase it, and it was mostly floating-rate type products, mortgage-related securities and those kind of asset-backed products.
beginning bulk
Mortgages had been richening up for the bulk of the beginning of year.
assets duration extreme five step
Let's take it one step at a time. Let's take the 30-year and see how that goes. We haven't had such long- duration assets in five years, so let's not go from one extreme to the other.
bad rates reverse trade
With short-term rates that much more than long-term rates, it's not a bad idea to reverse your trade.
investors movement short stay
We're recommending investors stay short because we think there's more movement to the downside.
carrying rally relief yesterday
We had a relief rally on the back end yesterday (Thursday), and it's carrying through to today.
carrying lifted rally relief weight
We had a relief rally on the back end yesterday, and it's carrying through to today. Plus, with the refunding out of the way, it's lifted a weight off the market.
behind falling fed inflation maybe worried worrying
Now, with the inflation numbers, there are some worrying about Fed credibility, worried maybe that they're falling behind the curve.
close float home money rates wait
As rates float higher, it's better to keep your money close to home and wait for better opportunities down the road.
economic fed people
As people read the economic numbers, they know the Fed is still there.
good indirect interested though
Dealers weren't that interested even though we had good indirect bidding.
brings energy
It brings it back to oil. As long as energy is making new highs, Treasuries will rally.