Posted To: MBS Commentary
In several ways, last week was a bit of a let-down in terms of answering the big questions. Treasuries and MBS had generally been holding sideways after suffering significant losses. The worst was over in the wee hours of May 12th, and Treasury yields never went higher. Unfortunately, the best was also over as yields never made it back to the previous lows from May 8th. In fact, both at home and abroad, the most important bond market trading levels were generally making lower highs and higher lows. In other words, the range was (and still is) consolidating. In technical jargon, these sorts of consolidations are most often known as “triangles.” Taken in conjunction with a sharper preceding move, a triangle is frequently referred to as a ” pennant ” (where the preceding sharp…(read more)
Via:: MBS Week Ahead: Fewer Days, but Potentially Greater Significance
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