Posted To: MBS Commentary
If we take the awesome part of 2016 for granted and simply focus on our most timely challenges, we find bond markets struggling to make any further improvement. Indeed, 10yr yields made it down to 1.98 in fairly short order this year, but haven't been able to close below there , despite several attempts. This has resulted in the technical momentum indicators looking increasingly gloomy. These sorts of roadblocks don't necessarily need to be a bad thing though. Indeed one of the classic technical chart formations is the "pennant," characterized by converging lines connecting the highs and lows after a bigger run in either direction. Just imagine a pennant at the end of a flagpole and you get the idea. The S&P chart gives us a better look at it: Pennants are most commonly...(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/1nAw9P7
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