MBS Day Ahead: Bonds Still Undecided on Impending Breakout to Open August

Posted To: MBS Commentary

"Impending breakout" sounds a bit more dramatic than reality may prove to be, but one never can be sure what the future will hold for bond markets. What we CAN be sure of is that bonds have been locked well inside last Tuesday's range for 5 straight days now, and this range-bind persists even as trading begins for August. The first day of a new month can often see a shift or acceleration in bond market movement. Early trading suggests that's going to be a tall order today. So instead, let's simply revisit the lines in the sand we're watching to determine bigger-picture shifts in momentum. First and foremost, there's last Tuesday's range (white dotted lines). Breaking higher or lower from there would be the first indication of new momentum--like 'moving...(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/2tViHsn