Posted To: MBS Commentary
After briefly breaking above the 1.84% inflection point amid last week’s ECB-related volatility, 10yr Treasury yields have been religiously leaning on it as a supportive ceiling. In fact, they were leaning on that ceiling well before the breakout too–as early as Jan 16. The foil on the other side of the trading range has been 1.75-1.76% which got it’s third major bounce today as well, and second bounce in the past two days counting Monday’s overnight session. When the domestic interest rate benchmark bounces off key resistance levels and key supportive levels in the same day, and for two days in a row , we can safely conclude that bond markets are trading a range and waiting for the next major input. Such “inputs” can be big events or simply an eventual overflow of pent…(read more)
Via:: MBS RECAP: Bond Markets Consolidate Ahead of FOMC
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