MBS Morning: Buyers Finally Showing Up. Will They Stick Around?

Posted To: MBS Commentary

When bonds sell off as decisively as they have over the last 4 trading sessions, it's only a matter of time before buyers push back. The bigger the selling spree and the longer it lasts, the more certain we can be of such a push back. The last major example of this phenomenon was in early August, and it too lasted for 4 days before yields bounce back on day 5. Unfortunately, we can't really count on the rest of August to serve as a template for what happens next. For starters, early August wasn't tripping the same technical triggers, apart from stochastics. RSI, on the other hand, was nowhere near the oversold line and yields were well within the bollinger band envelopes (note: there are at least 20 other commonly-used technical overlays we could use here, but these are the ones…(read more)

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MBS Morning: Buyers Finally Showing Up. Will They Stick Around?
MBS Morning: Buyers Finally Showing Up. Will They Stick Around?

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