MBS RECAP: Range Breakout or New Trend Channel?

Posted To: MBS Commentary

Range Breakout or New Trend Channel? It was an interesting trading session in the bond market as Treasury yields closed at their weakest levels at the same time that MBS were at their strongest levels. This uncommon scenario was made possible by a combination of previous MBS underperformance and anxiety over next week's Treasury auction cycle. In the bigger picture, the moderate weakness in Treasuries serves to confirm the unfriendly range breakout. But as we discussed this morning, we could also view this weakness in the context of a new trend channel. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Existing Home Sales 5.88m vs 5.89m f'cast, 6.00m prev Market Movement Recap 08:40 AM Bonds found their footing overnight, but not in any decisive way. EU bonds hurt while a risk-off…(read more)

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MBS RECAP: Range Breakout or New Trend Channel?
MBS RECAP: Range Breakout or New Trend Channel?

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