MBS Week Ahead: Light Data Ahead of Fed Week; Yellen's Chance to Address Jobs Report

Posted To: MBS Commentary

Very light economic calendar this week Fed Announcement next week Yellen speaks later today (jobs data will invariably come up) bond yields already near range boundary, but this time with momentum only just beginning to turn There are two measures of momentum that I've been including in most of 2016's chart: fast and slow stochastics. These technical studies that examine where yields (or prices) are currently trading relative to an arbitrary recent range. The closer today's yields are to recent lows, the stronger the momentum indication will be. In fast stochastics, low yields generate more immediate momentum signals. In slow stochastics, it takes more successive days near low yields to generate positive momentum signals. In each of the last two rally cycles, yields have hit the...(read more)

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