Posted To: MBS Commentary
10yr yields and MBS prices both made it to the weakest levels in 3 days–each threatening a break of technical support levels. In terms of 10yr yields, 1.926 is the nearest important ceiling. More broadly, it’s part of a narrow band of yields stretching down to 1.90 that’s served as a central point of gravity for more than a month. 10yr yields have only moved higher through this zone twice during that time, and those turned out to be the the two biggest days of selling . This morning’s head-fake threatened a similar breakout, but bonds are holding their ground for now. There has been no economic data behind the moves. Instead, tradeflows and technicals continue to set the tone. In that regard, there was a large, generalized move to the sidelines in multiple asset classes starting…(read more)
Via:: MBS MID-DAY: Bonds Opt to Hold Ground After Modest Head-Fake
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