Friday, September 1, 2017

MBS Day Ahead: Today's NFP Trade May Not be Market's "Final Answer"

Posted To: MBS Commentary

I wish Who Wants to be a Millionaire was still a popular show. Its catchphrases and terminology work really well with bond market psychology. Often times, bonds will look like they're going to move in one particular direction for one particular reason only to end up changing their "final answer" based on new info that came to light after using one of their lifelines. In the current case, the metaphorical contestant looks set to answer the question in a fairly clear way. Anything but a horrible NFP number today should obviously result in a bigger-picture bounce for yields for a few reasons. First of all there's the simple fact that the present bond rally is getting long in the tooth. This coincides with potential bounces at technical levels around 2.12%, and the bottom of the...(read more)
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from Mortgage News Daily http://ift.tt/2gvulII

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