MBS Day Ahead: Bonds Contend With Technical Resistance and Holiday Themes

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Posted To: MBS Commentary

After breaking above 1.92%, technicals get interesting for 10yr yields Bigger-picture uptrends in rates at risk of continuing Last full day of the week. How much of this is holiday-related apathy? Bonds got spanked yesterday , and the reason isn't entirely clear. While we can point to things like the unwinding of temporary 'flight-to-safety' trades (read: buy bonds, sell stocks) at the end of the European trading day, or the potential Treasury sales associated with new corporate bond issuance, yesterday's move remains a bit more enigmatic than most intraday sell-offs. This all might be a bit too frustrating if not for the fact that we're getting very near the end of a holiday-shortened trading week. It's very rare for market participants to get a day off on a day that…(read more)

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