MBS Day Ahead: Bonds Asserting Claim to Last Week's Range

Posted To: MBS Commentary

Oftentimes, a massive surge to long-term lows is met with a quick snap back to the safety of the previous range. So far, the current massive surge is not one of those times. In fact, 10yr yields began today's trading at levels well below the previous intraday low from February 11th. In simpler terms, that merely means that yields dropped big-time back on 2/11/16, hitting 1.53 for a moment before spiking to 1.66 by the end of the day. That 1.53 is an "intraday low" (the lowest level at any point in the trading day, regardless of 3pm closing levels). Naturally, intraday lows are harder to break , and this 1.53 level wasn't even touched until the past 2 weeks of Brexit drama. Yields hit 1.52 on 6/16, but closed much higher at 1.58. Even last Friday after making it as low as 1...(read more)

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