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MBS RECAP: Bonds on The Defensive as Range Breakout Looks More Serious

Posted To: MBS Commentary

Bonds on The Defensive as Range Breakout Looks More Serious Last week saw yields break higher after being squeezed by a consolidation pattern inside a wider sideways range. That type of breakout implied a test of the prevailing range ceiling (.72). After a head-fake and recovery last Thursday, the new week begins with yields definitively breaking the .72 ceiling. There are several places to lay blame, but at this point the weaker momentum is its own justification for existence. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) ISM Non-Manufacturing 57.8 vs 56.3 f'cast, 56.9 prev Market Movement Recap 08:32 AM 8:20 CME open saw sellers lined up to sell to start the week. Some cite preparations for the week's Treasury supply. Others point to stronger stocks…(read more)

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