Posted To: MBS Commentary

In spite of yesterday's Moderna vaccine news, 10yr yields managed to end the day nearly unchanged. More impressively, they're heading into the current session in noticeably stronger territory–once again testing the 0.88% technical level. Breaking below this floor would afford bond bulls quite a bit more breathing room, and it would decrease the risk of an impending push up and over 1.0% (something that looked entirely possible last week). This isn't to say that closing below 0.88% is some magic pill that ensures success for bonds in the short term, but it would be another vote in favor of a generally supportive ceiling taking shape under/around 1.0%. Indeed, yields have spent MUCH more time and energy trying to break back below 0.88% in the past 4 trading days than they did attempting…(read more)

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Source: Mortgage News Daily