Tuesday, November 29, 2016

MBS Day Ahead: Here Are The Relevant Pivot Points in 10yr Yields

Posted To: MBS Commentary

The term ' pivot point ' can mean slightly different things depending on your frame of reference and market-watching goals. For our purposes, the litmus test for a pivot (or inflection) point is the following: Have bonds been more likely to bounce vs break through when approaching the level in question? Have bonds sometimes broken through and then returned to bounce at the same level coming from the other direction? If we can answer " yes " to both of these questions, that's a pivot point. If we're only seeing bounces on one side (i.e. continually hitting a certain ceiling in yields), we would refer to that merely as a " technical level, " " ceiling ," or " support ." If yields were treating the level as a floor , the technical term is...(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/2fMLPO8

No comments:

Post a Comment