MBS Day Ahead: More of the Same For Bonds, But For How Long?

Posted To: MBS Commentary

Yesterday was tense at moments, with several attempts made to break the range Not only did the range hold, but we quickly moved back to the other side On one hand, that's encouraging. On another, it means bonds have yet to commit As Wednesday begins, we find bonds squarely back inside the same old range that has persisted almost perfectly since the FOMC Minutes release 2 weeks ago (1.82 to 1.89 in 10yr yields). Yesterday, it looked like that range was under serious threat, but somewhat surprisingly, yields bounced multiple times at 1.89 between 9:00 and 9:30am before finding inspiration to rally for the rest of the day. Rather than serve as an impetus to trade in the opposite direction, the first day of this new month has seen yields continue moving to the other ( lower ) side of the range...(read more)

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