Friday, March 31, 2017

MBS Day Ahead: Technical Levels Under Attack Regardless of Data

Posted To: MBS Commentary

While there are several economic reports that have market-moving power today, the bigger issue for bond markets may be the technical battle that's been fought at 10yr yields of 2.42% all week. This has been a very central pivot point for the 2017 range, and yields have broken or bounced there on 8 of the last 9 days. Sidenote: the word "broken" in the previous sentence does indeed refer to yields moving above 2.42%. Why, then, are we talking about it as a ceiling still? Because when it comes to technical analysis of "breakouts," the break of the line itself is only the first development. Breakouts require "confirmation." Confirmation can be defined in a couple ways depending on the approach of the technician, but the most prevalent definition is "closing...(read more)
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from Mortgage News Daily http://ift.tt/2nmQExP

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