Posted To: MBS Commentary
Yesterday morning, we discussed the fact that bond markets needed to make additional gains beyond recent technical floors, or risk sending the signal that they’d bounce higher (in rate). This was accomplished in relatively grand fashion as bonds shrugged off European cues and decent economic data. 10yr yields broke low enough to consider the 1.90 level as being “tested.” When it comes to technical levels, “tests” usually refer to the initial break of a technical target and “confirmation” comes when trading levels either hold the recently broken level for a certain period of time. With yesterday’s break not arriving until the afternoon, we’re definitely looking at today as being necessary for confirmation. Now that we’ve seen yesterday’s CPI…(read more)
Via:: MBS Day Ahead: Positive Technical Developments Now Need Confirmation
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