MBS Day Ahead: Rates Don’t Live in a One Story Building


Posted To: MBS Commentary

10yr yields hit 2.5112 overnight. That's close enough to the important 2.52% pivot point to suggest an expansion of what we consider the current range to be. After all, before the beginning of 2017, 2.52% was actually the most important pivot point on our radar. It had served as a firm ceiling before the mid-December Fed announcement and subsequently served as a firm floor despite several attempts to break it in the 2nd half of the month. It wasn't until yields got an early start on their new year's rally that it was broken. After that, the first major ceiling to take shape was the 2.42% level that was just broken yesterday. What do we do when a ceiling breaks? First of all, we remember that rates don't live in a one story building. This 2.42% business was just the ceiling of…(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