Posted To: MBS Commentary
Yesterday’s trading activity, while light, was a welcome addition to Friday’s. The two combined to completely reverse the somewhat scary negative bounce that followed Wednesday’s FOMC rally (for those of you playing along at home, that’s “down, up, down, down” for rates from Wednesday’ through yesterday). But the second day of improvements wasn’t enough to break 10yr yields or MBS through their best levels from Wednesday. Given that trading pattern, and other technical developments, bonds would really need to break through that resistance today in order to keep the rally alive. Otherwise, they risk a more pronounced bounce than they experienced last Thursday. As for the other technicals in play, there are a few to discuss, but one of the simplest is the Relative…(read more)
Via:: MBS Day Ahead: Decision Time For Bond Markets After Running Out of Momentum
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