Posted To: MBS Commentary
Bond markets are very much on a fence at the moment with respect to short and intermediate trends. There are a few ways we can measure this fence-sitting. The most basic would be to look at "pivot points" that have recently made a name for themselves. 2.31% is a good example as it's been the modal bottom of the post-election range. In this context, "modal" refers to the most frequently recurring example of a particular technical level. In other words, 2.31% has seen more "floor bounces" than any other potential floor level. Another way to look at fence-sitting would be with a technical overlay such as Bollinger Bands (click the link if you really want to dig into them), which plot a 21-day exponential moving average and 2 lines that mirror the moving average...(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/2oQbfLL
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