Posted To: MBS CommentaryRemember the flat, boring range between 2.8 and 2.9? Or perhaps you prefer the slightly stricter version between 2.82 and 2.88? That’s the range that dominated our conversation and bond trading beginning in late June. The range went on vacation through early August, but has been back in town for more than 3 weeks now . Any strength in bonds today would easily keep the range intact. As the chart suggests, the bounce in longer-term momentum (slow stochastics) is bad news, but it requires some qualification. While it’s true that bonds tend to have more red days than green days after such bounces, the first 3 days of this week count, and sometimes the bounces are shallow enough that we wouldn’t necessarily need to see too much more weakness before the next reversal in momentum. Beyond…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.