Posted To: MBS Commentary
Bond markets sold off today, and when you see the longer term chart below, it’s hard to be too upset about it. The chart not only serves to provide some context for today’s weakness, but also some potential causality. While it’s never a guarantee that technical levels will stop a bond market rally dead in it’s tracks, when it happens, it can make the weakness easier to understand. In the current case, rates had been falling nicely since the beginning of March, and for that matter, since the beginning of 2014. Yesterday’s bigger rally brought us right in line with an important long-term inflection point marked by the mid 1.8 range in 10yr yields. Simultaneously, yields had also fallen to the lower end of the long-term rally trend . Here again, there’s no hard and fast…(read more)
Via:: MBS RECAP: Moderate, Logical Big Picture Weakness Ahead of NFP
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