Posted To: MBS Commentary

Bonds are holding below what had been a yield floor since mid-October. Yesterday raised some concern about the recently stronger trend reversing, but overnight gains have kept the dream alive. In looking at the various "key levels" I had on my chart of 10yr yields, I thought I recognized a bit of a pattern. See if you can see it: I suppose it would have been more of a mental triumph if I'd kept the 1.72% line on the chart, as that has shown up on several occasions in the MBS Huddle. That's the only other line needed to round out a perfect little Fibonacci sequence between 1.50% and the 1.95% highs. What does all that mean? I'll be the first to tell you that Fibonacci lines aren't magically predictive, even though some talking heads and other pundits make it seem that…(read more)

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Source: Mortgage News Daily