MBS Day Ahead: Bonds Defending The Castle. Here's The Wall To Watch

Posted To: MBS Commentary

Between Friday and Monday, it looked like the bond market might try to hold at slightly better levels than those implied by the recent bounce at 1.0% in 10yr yields. Apart from being a nice round number, the psychological pivot point at 1.0% happened to coincide with the lower boundary of the trend channel we've been tracking for months. Granted, such trends do nothing to predict every little movement, but they do suggest a general area for support and resistance. In the worst case , the current trend puts the ceiling at 1.20 to 1.25% in the short term, but other pivot points could step in to help before things get that bad. Pictures are worth more words in this case. The yellow lines show the prevailing trend channel with the "worst case" upper resistance area at 1.20-1.25. As…(read more)

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MBS Day Ahead: Bonds Defending The Castle. Here's The Wall To Watch
MBS Day Ahead: Bonds Defending The Castle. Here's The Wall To Watch

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