Posted To: MBS Commentary
The Fed is yet to come this week and that could be the first good opportunity for bonds to decide on their next move from the past few days of consolidation. Actually, yesterday’s closing levels were fairly close to those seen on May 6th (2.23-2.24), and bonds have traded roughly the same distance in either direction since then (2.11-2.36). So arguably, the consolidation has been going on for that long. During that time, several key levels have been better-traveled than others. Although we have indeed seen lows that approach 2.10, it’s 2.14 that has done the most to step in as a lower bound. This served as the jumping off point for yesterday’s sell-off which didn’t run it’s course until hitting 2.24, another key pivot in May. From there, the next defensive ceiling is at…(read more)
Via:: MBS Day Ahead: Bonds Still Have Room on Either Side of the Range Ahead of Fed
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