MBS Day Ahead: Bonds at Least Have a Chance

Home / Blog / MBS Day Ahead: Bonds at Least Have a Chance

Posted To: MBS Commentary

I've been pretty bearish on bonds, in general, since the end of 2016. Against that backdrop, we can of course still look for tactical opportunities, but there are also times to reinforce our defensive stance. The most recent bounce in rates/yields near the end of August was one of those instances where "defense" made more sense. With yields operating near 2.90%--the top of the recent range-- it still makes sense , but the longer we see bonds resist breaking to higher levels, the more we may wonder if we're going to see a friendly bounce occur INSIDE the broader consolidation range. In other words, maybe we'll see a short-term ceiling at the teal line instead of the upper yellow line. There's already some technical support for that idea from fast stochastics (short...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.



Source: http://www.mortgagen...

f5b7001f be67 48e3 811b 4dbece4b2213 ccbb32c5 bd85 41b8 a2d9 717a01f47018 643ab66d 19b8 44a3 92d8 bf1f36635c59 fd0ef5aa 7ca3 4fa4 9a20 defc74fd62d7 8a04b9f1 0e67 4d39 a969 504a438c3144 b7576bc1 44f5 4d18 a3ed e1c5e06dd244 c8b0cc34 f33a 4052 bea6 eccc40bf5d27 e20d0cc6 b0a1 4a9f a5e2 a8e8fc3b12e9 bb8aab72 daa7 4ed8 a22e 22d7caa6840d 7ac0baa1 ba03 401f 9e3b 3a62750d95d1 7f59f648 cca2 4304 af8e 0badcbab8850 d3491c12 6864 4751 b83f 1fbaa87ec004 13ea0e32 f985 4aa1 9866 0e41bb108748 5da9b68a eede 4fd7 8587 0c0bc2b978a8 b47364bf 3913 4c4b a773 78b8f729ec31 fea594c0 277b 4309 91fa e4a887eb2dcc 4168e45a 1cef 402c b9a3 ddb2231bf937 6acbded4 0169 4685 8204 0a1c48315542 c0523821 3e15 43db 8783 f8ed5af3dd8a 8daad3c1 c3d9 45c7 98b1 1c64120ebeb7 5d9fed14 528f 4f99 9179 95c3dd273a35 fc4918c5 1cb4 4c76 8bcb 64fc09051b61 4417e6bb afb5 43c6 837c 7b9a879eec12