Posted To: MBS Commentary
The chart in this morning's Day Ahead showed consolidation patterns (lower highs and higher lows) in both German Bunds and US Treasuries. For the latter, the consolidation pattern remains intact after an attempted breakout today. In other words, yields tried to move below the lower line but were unable to do so. The setup for this attempted rally had to do with a series of events this morning. It began with the ADP Employment data, which was fairly tepid, but positively revised in the previous month by more than 30k. This was enough to cause modest selling pressure for bonds, but essentially no volume. That let us know traders were likely waiting for the 8:30am Treasury Refunding announcement (an update on Treasury auction amounts for the coming fiscal quarter). Amounts were left unchanged...(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/2w7yDcx
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