Posted To: MBS Commentary
No, yesterday’s FOMC Minutes weren’t enough to change the fate of bond markets in and of themselves. They weren’t even enough to get bond markets back to last week’s levels. In the chart below, the current week begins right as 10yr yields (yellow line) break above the dotted yellow line near 2.05%. It’s actually rather disheartening that yesterday’s strength never even mad an attempt to challenge last week’s highs. In fact, it’s downright ominous from a technical perspective. But before we freak out about that, let’s keep in mind that Treasuries are exemplifying the “freak out” trade because they have nothing better to do until Europe makes up it’s mind. If you’ve been reading this site for a while, now is the time to recall the discussions…(read more)
Via:: MBS Day Ahead: Was FOMC Enough to Change Our Fate?
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