Posted To: MBS Commentary

Bonds close early today for New Year's Eve and are fully closed tomorrow for New Year's Day. There is no significant data on tap today although trade-related headlines remain a possibility. Even then, any major potential market mover would have to be compared to a tree falling in the woods with no one around to hear it. In the bigger picture, bonds will not be willing or able to move enough to break free from the consolidation trend we've been tracking for most of the 3rd quarter. It began coming into focus with the early October bounce in yields at the bottom of the range. It was then solidified by the ceiling bounce in early November and hasn't come close to being challenged since. Because these lines will eventually converge, yields are guaranteed to break one of them in…(read more)

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Source: Mortgage News Daily