MBS Day Ahead: Bonds in Early Stages of Case For New Ceiling

Facebooktwitterlinkedin

Posted To: MBS Commentary

GDP is already out this morning and it it's left bonds in slightly stronger territory. With these gains, the longer-term chart looks like 10s might be trying to form a new ceiling right in line with the last major ceiling from early June. Momentum technicals wouldn't be too opposed to the idea as short-term stochastics have already leveled off in oversold territory and longer-term stochastics are getting close. This refers to the red/blue and green/teal lines in the chart above, respectively. The higher they go, the more they're considered to be "oversold"–an intentionally vague term that market technicians use to refer to a security that has seen so much selling over a certain amount of time, that it's increasingly likely to see a bounce in the other direction. The…(read more)

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

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons