Posted To: MBS Commentary
Bonds Are Officially in a Positive Short-Term Trend. This was also the case heading into mid January, but steady selling following Yellen's speech (Jan 18) shattered the dream of a deeper recovery from post-election highs. As of Jan 25th, we may well have worried that the longer-term uptrend would be back en vogue--something that we could identify by a break above mid-December highs in Treasury yields. But bonds bounced on the 26th, and they've been in a fairly linear downtrend since then. As the chart shows, yesterday (2nd candlestick from the right... the big green one) was the strongest day of that trend, and it challenged the lower boundary. Without a doubt, the notion of a meaningful rally is the underdog since the election. It stands to reason that there's a far higher probability...(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/2knpNUj
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