Posted To: MBS CommentaryBonds have either trying to position themselves in a relatively defensive, pessimistic stance heading into upcoming key events, or their staging on the edge of some important technical levels and daring those events to push them into weaker territory. Don’t worry about trying to understand that sentence until we take a look at charts. The notion of ” staging on the edge of important technical levels” has to do with the consolidation created by the collision of September’s decisive uptrend in rates with October’s corrective downtrend. In other words, we’re talking about the diagonal lines in the following chart. Yields have bounced on the ceiling several times. They’ll need to find a reason to rally today if they’re to avoid breaking above it. Now let’s…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631