Posted To: MBS Commentary

Bonds have recently been on a rather sharp selling spree leading up to and away from last Friday's jobs report. After that it was the following Wednesday (today) that stood the best chance of letting us know where we stood due to the confluence of the CPI data and the 10yr Treasury auction. The day begins with CPI coming in as-expected, and the bond market erasing overnight weakness. If the strength (or even stability) can persist after the 1pm Treasury auction, today will increasingly look like the first case for a supportive ceiling against the recent uptrend in rates. AM highs of 1.374% line up well with the 1.37% pivot point from early July. That's the first option for a defensive stand today. If that's broken, bond bulls would hope to see support kick in before breaking the…(read more)

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Source: Mortgage News Daily