Posted To: MBS Commentary
With slight weakness overnight, bonds begin the domestic trading session with their backs against the wall, yet again. The "wall" in this case could be thought of as more of a "ceiling" marking the upper boundary of the current sideways range. As we discussed yesterday , the key levels associated with this ceiling are within a few bps of 1.62, so anywhere from 1.60 to 1.64 is generally where we want to bounce. But momentum indicators suggest there's still some upward pressure on rates . We're waiting to see if that pressure is big enough for the ceiling to break, or if bonds can manage to hold the line until next week's policy announcements from the Fed and the Bank of Japan. Today's big central bank bullet is already dodged , with no major reaction to the...(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/2abSZct
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