Posted To: MBS Commentary
After Wednesday's Fed-inspired rout, bond yields have done a great job finding support in the 1.56-1.59% area overnight amid high volume trading. All other things being equal, and purely from a technical standpoint, this speaks to a good case for resilience. The 1.56-1.59 area has generally held up as the lower end of 2021's "intermission" range. Yields have moved below that on occasion, but not for long–not until last week anyway. By treating that same area as a sort of ceiling in the overnight session, bonds are telling us there's a chance that it will evolve into a friendly inflection point that offers support in the near term. "Near term" is a cop-out used by analysts and economists when they don't want to commit to too specific a time frame. I could…(read more)
Source: Mortgage News Daily
