MBS Week Ahead: Last Week of Summer For Bonds
Posted To: MBS CommentaryEven though quite a few kids are going back to school today, there’s still one week of Summer remaining for the bond market. Labor Day (this upcoming weekend) is a major dividing line. It marks the shifting of gears back into a more serious and focused frame of mind after a few months of being on autopilot . Given the established rarity of big-picture momentum during those months, it’s no surprise to see that we’ve been moving sharply sideways in a range that’s not even 20bps wide in 10yr yields. There’s a case to be made for viewing the technicals and the range boundaries as largely irrelevant at this time of year. Reason being: the next trend that ends up taking shape (as soon as next week) historically doesn’t care what went on during July/August. It’s more likely…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.