Posted To: MBS CommentaryYesterday’s Fed announcement–specifically, Fed Chair Powell’s press conference remarks–set bonds up for a potential bounce. This would come at a critical time considering the prevailing trend for September has/had 10yr yields on a collision course with the highest levels in years. After a week’s worth of sideways trading just over a firm floor of 3.06%, yields managed to sneak all the way down to 3.048% yesterday afternoon. Today becomes a battle to see whether or not we can remain under 3.06% (or ideally, 3.05%). While that’s currently NOT the case at the moment, it’s about where we end the day that matters (at least, it matters more than where we are at 9am). In technical terms, momentum has been oversold for a while. Unfortunately, an oversold condition is never a guarantee…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.