Posted To: MBS Commentary
I talk a lot about " trends "--a word that's easy enough to understand in a general sense, but more esoteric when we try to understand it in specific terms. Let's demystify it a bit. In a general sense, a trend simply refers to " direction ." Far more accurate would be to say "persistence of directional movement." If yields are persistently moving in an upward direction, we could translate that as "uptrend in rates." But how do we identify trends? Wouldn't you know it! There are multiple ways! The simplest is to draw a line connecting the highs and lows on any given chart of your favorite bond market security. The more "touches" along that line, the more relevant the trend is. Even if the charted security is bouncing on an implied...(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/2dkrQSN
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