Posted To: MBS Commentary
This morning's ECB announcement proved to be moderately bond-friendly. Combined with weaker Jobless Claims data, it's been enough to keep bonds inside this week's new, lower yield range marked by a ceiling of roughly 1.30% (we have it marked at 1.295, or 1.29+ for short). We're close enough that it wouldn't take much of a negative impulse for that ceiling to be challenged, but more dramatic movement may be reserved for the next two weeks which will bring a Fed announcement and the hefty data cycle culminating in NFP Friday on August 6th. Perhaps the bigger question is whether or not yields just experienced a big-picture bounce by filling February's opening gap (a rare technical phenomenon where bonds start a new trading day noticeably farther away from the end of the…(read more)
Source: Mortgage News Daily
