Posted To: MBS Commentary

Yesterday's econ data caused a stir in the bond market, forcing yields to break above a key ceiling at .74%. Can they make it back below that ceiling today or will things go from bad to worse with a break of the next important ceiling at .79%? The following chart shows the recent drama (I adjusted the lines just slightly to account for the past few days of movement. They now rest perfectly on closing highs and lows. That means red candlesticks may be below the bottom line and green candlesticks may be above the top line as long as the top of a red candlestick or the bottom of a green one is inside the trend). Notice the head-fake breakout late last week and the quick reversal that has followed. Notably, without yesterday's trading session, there wouldn't be any drama here to discuss…(read more)

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Source: Mortgage News Daily