MBS RECAP: Tame Trading Day Leaves Outlook Intact

Posted To: MBS Commentary

Tame Trading Day Leaves Outlook Intact The bond market has been in a bullish consolidation pattern since last Monday and today's trading activity did little to change that. In fact, it did nothing to change that as MBS prices and Treasury yields both stayed "inside the lines" (literally and figuratively). In literal terms, the lines in question would simply refer to the trends of lower highs and lower lows converging in a narrower and narrower range in 10yr yields. Bonds will continue to wait for bigger news before making bigger moves, but volatility could increase in the short term as we head into a notoriously weird holiday trading week (not to mention the consolidation patterns are running out of room). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and…(read more)

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