MBS RECAP: Is it a Ceiling or a Floor? Bonds Aren't Telling

Posted To: MBS Commentary

US bond markets were completely done moving by the time the domestic session began. Case in point, 10yr yields ended the day at 1.473, exactly the same level seen at the 8:20am CME open. You'll notice this is technically much better than yesterday's closing levels, around 1.51, and refreshingly better than yesterday's highs of 1.53. All that having been said, it would have been much more refreshing to see a bit more commitment to the idea of heading back in the other direction. As it stands, we can't really tell if we're looking at a floor or a ceiling in today's trading range. This is a bit beside the point, however, for two reasons. First of all, it wouldn't be too much of a surprise to see some indecision ahead of tomorrow's Bank of England announcement. Everyone...(read more)

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