By Matthew Graham

Posted To: MBS Commentary

Yesterday’s recap noted an increased risk of weakness today due to the technical bounce at 1.852. Here it is. No, really, today is pretty much that simple. It would have taken some serious motivation for bonds to extent the rally any further ahead of NFP. Reason being: the mid 1.8 zone (1.84-1.86) is one of the most consistently relevant inflection points for 10yr yields in recent years. I went into greater detail on this in the Day Ahead . If you’re interested in this technical level stuff, there’s a good chart in that article. If you’re less interested in that technical stuff, suffice it to say that this morning’s data combined with the strength of the existing rally made this a logical place to circle the wagons ahead of tomorrow’s NFP. Jobless Claims haven’t…(read more)

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Via:: MBS MID-DAY: Much Stronger Data Not the Full Story Behind Bond Market Correction

      

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Written by : Mortgage News Daily

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