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&#039s large-volume/large-movement day, it&#039s clear that bond markets have been in a keeping pattern at any time considering that. As can be observed in today&#039s chart, and as we discussed in depth on MBS Reside yesterday, just about every subsequent buying and selling day has fallen “inside of” Wednesday&#039s 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&#039ve 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)

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