Posted To: MBS Commentary
Now that bonds have broken through previous resistance levels (.58 in 10yr yields and 103.00 in 2.0 UMBS), what comes next? Rather than look for fast-paced follow-through, it would be enough of a victory to merely see bonds maintain these newly acquired levels. Today we'll discuss what those levels might look like and what we'd need to see for them to persist. The key level for 10yr yields was (and perhaps still is) 0.58%. More than any other level, this marked the bottom of the coronavirus range, even though we'd seen yields move much lower on a single day (March 9th). There were several failed attempts to close below 0.58 in July until it finally gave way last week with Thursday and Friday easily confirming the breakout by maintaining intraday ranges that topped out at .56. A…(read more)
Source: Mortgage News Daily
