MBS Day Ahead: So What's The "Range-Breaker" Now?

Posted To: MBS Commentary

With bond markets having clearly consolidated heading into last week's Jackson Hole speeches and with Jackson hole ultimately NOT resulting in a a confirmed break of the consolidative range (see the chart), the next question is logical: If it wasn't the Fed, what will it take to break this range? Recall that even before Jackson Hole, we'd discussed the possibility that markets, themselves, don't know what the "range-breaker" will be, but that Jackson Hole was simply the biggest event on the horizon, and that it happened to fall during a time where bonds were running out of room to make a decision. Miraculously, even though it looked like bonds would surely be broken out of this range by now, they're still hanging on (see that rightmost candlestick in the chart...(read more)

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