Posted To: MBS Commentary
Bonds rallied significantly today on a confluence of news. Disparate events and headlines hit markets at just the right time and in just the right combination to catch bond traders on their heels. We began discussing the imbalance of trading positions late last week. Specifically, logic and technicals suggested a bounce toward higher yields. In last week's MBS Huddle video, I discussed the opportunity presented by that level of consensus. Specifically, when there's such widespread apparent agreement that yields will move in a certain direction, big, counterintuitive moves become increasingly possible. That's not to say that rates will always move opposite the direction that most traders think they'll go. Rather, I'd say that WHEN rates move in the opposite direction from...(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/2f1015a
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