Posted To: MBS Commentary
Stop me if you’ve heard this one before. There’s this epic long-term inflection point defined by 10yr yield levels 1.84-1.86. It stretches back to 2011, when it acted as uncanny resistance for almost the entire year. It acted as similarly uncanny support for most of 2012, and had been all but forgotten until late 2014. That’s when the wild October 15th rally stopped at 1.86 after the day opened at 2.20! What are the chances that Treasuries move that far and land right on an important technical level? Then again, that’s why technical levels are important. There’s some magic in there that we’ll never be able to define, but we know magic when we see it. Of late, this technical zone has been magically frustrating all attempts to break below. Here’s how the past few weeks…(read more)
Via:: MBS Day Ahead: Bonds Needing More Motivation to Get Serious About Challenging Resistance
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