Thursday, November 1, 2018

MBS Day Ahead: 2 Ways Bonds Are Preparing For The Next Big Move

Posted To: MBS Commentary

Bonds have either trying to position themselves in a relatively defensive, pessimistic stance heading into upcoming key events, or their staging on the edge of some important technical levels and daring those events to push them into weaker territory. Don't worry about trying to understand that sentence until we take a look at charts. The notion of " staging on the edge of important technical levels" has to do with the consolidation created by the collision of September's decisive uptrend in rates with October's corrective downtrend. In other words, we're talking about the diagonal lines in the following chart. Yields have bounced on the ceiling several times. They'll need to find a reason to rally today if they're to avoid breaking above it. Now let's...(read more)
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from Mortgage News Daily https://ift.tt/2PAhoxd

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