Posted To: MBS Commentary
What a boring 3 days! The only thing that’s happened for bond markets is an utterly mechanical trend back toward Thursday morning’s low yields and/or the epic long term inflection point centered on 2.05. Volumes have been low and trading ranges increasingly narrow. The only apparent reaction to data occurs when the data supports the predisposition to return to the neutral technical territory. This morning’s Housing Starts data was no exception. Yields moved higher afterward despite a much weaker-than-expected reading. Yields moved higher because they’d reached the boundary of the 2.04-2.08 inflection zone. Another way to look at this would be to say yields moved higher because they briefly overshot 2.05%, which is the dominant single pivot point (any trading level that tends…(read more)
Via:: MBS RECAP: Pre-FOMC Consolidation and Nothing More
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