Posted To: MBS Commentary
After rising to the highest side of the long term trend last week, yields have a chance to explode higher, or re-commit to the range this week. “Exploding higher” could be problematic, or course, but it’s good to remember that there was a similar explosion in September 2014 that ended up seeing rates re-enter the trend shortly thereafter. That said, the prelude to this potential explosion has been bigger and more aggressive . As such, it continues to make sense to guard against the possibility that selling trends continue until/unless we can confirm we’re catching a break. So far, no dice. Adding uncertainty to the mix is the fact that any early-to-mid-week conclusions can’t possibly be confirmed without input from the week’s most important data: Friday’s big jobs…(read more)
Via:: MBS Week Ahead: Important Week for Fed Comments, Econ Data, and Trend Watching
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