MBS Working day In advance: Clearly a Waiting Recreation, but For How Prolonged?
Posted To: MBS Commentary
With the buying and selling exercise observed in the wake of past Wednesday's large-volume/large-movement day, it's clear that bond markets have been in a keeping pattern at any time considering that. As can be observed in today's chart, and as we discussed in depth on MBS Reside yesterday, just about every subsequent buying and selling day has fallen “inside of” Wednesday's assortment (hence the time period “inside of times”). That assortment can be observed in the white lines. The teal lines introduce yet another idea: consolidation . In other phrases, not only have yields held inside of a sideways assortment, they've also commonly been presenting decreased highs and higher lows. This benefits in a narrowing assortment that indicates a breakout by month-end. If we see a quite powerful split of the teal lines, it i ncreases the odds of the corresponding white line…(read a lot more)