Posted To: MBS Commentary
After an epic run to all-time Treasury lows (and nearly all-time mortgage rate lows) bond markets are flashing warning signs about a bounce. This sort of warning relies almost exclusively on the "technical" side of the analytical spectrum. (That's the side that is based purely on math applied to past and present movement in rates.) Technical analysis is far from a perfect predictor of the future, but it does a good job of letting us know when certain levels could be important to traders and when a shift might be happening. Now is one of those times. The momentum indicators had been strong as rates continued to move lower, but even yesterday suggested waning momentum--the first warning sign of a potential bounce. In the following chart, we can see this in the middle section which...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/29viQuc
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