MBS Day Ahead: Absence of Data Leaves Focus on The Negative Trend

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Posted To: MBS Commentary

Bond markets are in the throes of their worst uptrend in yields since the November presidential election. Granted, trading levels are still roughly in the middle of the post-election range, but that's precious little consolation next to the past 3 weeks of pain. Speaking of words that sound like consolation, let's talk about consolidation. Yesterday saw a well-behaved consolidation pattern . Technicians also refer to these patterns as "triangles" because the lines connecting the highs and lows converge like 2 sides of a triangle. I've never much liked the "triangle" term (because where's the third side?!) but it's a pretty standard part of technical analysis jargon. In yesterday's case, the triangle was upwardly-sloped. In other words, the lower line…(read more)

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