Posted To: MBS Commentary
Bond markets had a reasonably good day, all things considered. The caveat is that we shouldn't read much of anything into today's trading because it was exceptionally light and downright mechanical at times. By that I mean that it looks like trading desks had certain technical levels set like bowling bumpers . Every time other traders tried to take yields outside those bumpers, there was an inevitable push back. This was most notable in the early overnight session with multiple successive bounces on both sides of the lane. But the bumpers remained relevant at the busiest time of the morning following the domestic econ data. A true testament to their relevance came in the afternoon. This light volume, illiquid environment is perfect for observing these sorts of mechanical "bumper"...(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/2vGyY5h
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