MBS Day Ahead: Pondering The Next Move as Data Picks Up


Posted To: MBS Commentary

In the day just past, bonds put in their biggest day of weakness since mid-April on what looks to have been a purely technical correction. It was an ideal day for such things considering the extreme gains on Monday and the absence of any significant economic data. 10yr yields moved back up to the nearest technical ceiling on our list, 2.12-2.13% In the day ahead, bonds will have more significant economic data to digest with the 10am ISM Non-Manufacturing report being the headliner. Bond traders will also be trying to get a read on the consensus about the next possible move–especially after yesterday threatened to be the first part of some sort of bounce. Keep in mind that such bounces are a necessary byproduct of strong momentum and recent momentum (past 3 weeks) has definitely been strong…(read more)

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

Show Buttons
Hide Buttons