Posted To: MBS Commentary

Bonds continue to be well-contained by the prevailing consolidation range–a series of higher lows and static highs that's been in place in its current form since mid October. A big break outside that range could serve as a cue for sustained momentum in the direction of the break. Think of such patterns as the bond market's way to pause and reflect before choosing the direction of new momentum. As for the underlying data and events that could spark such a breakout, this morning's econ data is the most robust of the week with Philly Fed, Jobless Claims, Import Prices, Builder Confidence and the headliner: Retail Sales. But even this line-up isn't up to the task of generating enough bond movement to break the range (update: the data just came out and indeed, bonds are little-changed…(read more)

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Source: Mortgage News Daily