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...

089300d8 9e20 4869 a377 07078e24ab91 b227e222 d56b 4c44 b712 790ebac2c848 44d23249 6c34 44eb 973e a9caa589f73d 59eec72d b025 4200 a95b 7b877ae717ea c889a013 d564 4f57 83a9 c2d44ba508ac f94036f2 904d 45f9 b7da 65e3ace03cdd 2f1d24cd 3bc6 4cf5 9a65 b90b6c9869e7 65986fb5 a155 4b0d 9e61 f2e8497abc48 5a330341 3535 43df 9a0c b555a878ba3d f8604051 803a 4c6a 9bf7 d76489c94373 d99c1fe4 d186 4923 8121 12663fcca219 391994de 00f0 4dc8 bb1b 63e2a39566a6 2128631e 55af 42bf 90db 90969c2aaf70 a3a08b71 a339 463d ae62 6db964678eac 8cb8f073 aa5c 4455 ae21 19e03249a636 5e7fc930 5a39 4479 8a66 351406539518 2a8083e7 92b3 4de0 96d6 3b2b570ecbe4 2ea76b2b b1a8 4cbb 8bbb 8ca894eb11db f7df473c 9c91 4a7d 8a51 cf67f06d0711 192a9c6f 9b2b 4118 9afa 6ccc5c5ea934 6c3e2de1 f4ca 4924 967f 908b8f9c4585 a3b5f1b9 52e5 4d85 9d35 84621f9ed5ba bf099feb 912c 47dd a49a b607aea3170d