Posted To: MBS Commentary
Yesterday morning, we discussed the technical outlook for bond markets in the context of “open options.” In other words, the technical studies were not as strong as they can sometimes be, but neither were they confirming any sort of negativity. In short, the risks were balanced. That ended up being a good lens through which to view the day as technical levels came into play right from the outset. 10yr yields bounced just under 1.98 before the open–right in line with Friday’s supportive ceiling and the pivoted lower at 1.945–right in line with Friday’s best levels. It would have been just as unsurprising to have seen a move in the other direction though. Again today, the mainstream technical studies are offering the same message . Bond markets aren’t necessarily in the…(read more)
Via:: MBS Day Ahead: Bond Market Keeping Options Open; One More Data-Free Day
