Posted To: MBS Commentary
A noncommittal, sideways grind only has so much noncommittal and sideways in it before breaking out. This one was already overdue and already showing signs that it was on its last legs (especially with respect to the technical bounce threat in Europe and the suggestion from Pending Home Sales that this morning’s Existing Home Sales data might be even stronger than expected). Bonds were already on the run by the time Existing Home Sales came out. Europe was clearly leading the charge there, though corporate bond market hedging was also taking a toll. Sales indeed came out much stronger than expected (5.19 mln vs 5.03 mln forecast and 4.89 previous). After that, the selling picked up as bonds confirmed technical breakouts and followed through to the next support zone near 1.98. In the chart…(read more)
Via:: MBS MID-DAY: Bonds Finally Break the Monotony, but in an Unfriendly Direction
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