Posted To: MBS Commentary
Things have gone from "very sideways" to "very bad" for bond markets in less than 48 hours. As of Monday afternoon, this could have been any other week during the past 3 months. Yields were trading well-within the confines of a very well established range and showed little intention of breaking out. No matter how much I wrote (or you read) about the fact that consolidative ranges tend to give way to relatively explosive breakouts, the prospects for those breakouts seem far in the future and the fears seem overblown. Not only that, but there's always the hope that the breakout will end up being friendly, unlike the breakout we're actually seeing. But as far as the conventional wisdom of consolidating, sideways ranges giving way to higher-momentum breakouts, this one...(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/2BmxzrM
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