market rationality
[This is from Briefing.com, reporting on bond market movements this
morning after a modest and unsuprising jobs report.]
Rumor Mills : The initial fall-off in treasuries on the jobs print
has been rumored to have been the result a bad print (188K) seen in
foreign exchange land (”London fx types”) who had then “sold them til
their hands bled,” but the actual number quickly reversed things.
Take 2: just a straight buy/sell error out of a large fund. Take 3:
“the rumor we heard” (coming, in fact, from some London FX types) was
that an algorithmic fund, wired up to trade on its own, picks the
reports straight off the wires & instantly executes x or y depending
on the data. Supposedly it picked-up the revision of 177K instead of
the actual. Talk amongst yourselves.