MBS Week Ahead: New Range Comes Into Focus as Its Time Runs Out


Posted To: MBS Commentary

Stop me if you've heard this one before. There's this range in early 2019… It was consolidating. Then it broke. Now it's sideways. Unless you're just joining us for the first time, you've likely had quite enough of all the range-bound discussion. I know I have. Yet I must continue to discuss it because it's incredibly relevant and interesting. How is a sideways range interesting? This particular version resulted in the narrowest monthly 10yr yield trading range since 1979 (Feb 1- Feb 28). The longer such a range persists, the more it's telling us about pervasive uncertainty. The more pervasive the uncertainty, the bigger the implication for the next move. Bottom line: whenever this range-bound business finally concludes, rates should be on the move for better or…(read more)

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