Posted To: MBS Commentary

Friday begins with a stronger-than-expected jobs report, including big positive revisions to the past few months and another drop in the unemployment rate–all things that would typically be bad for the bond market. While bonds did initially sell off a bit, they're moving well into positive territory in the first few hours of trade. With the new gains, we've updated the key levels meter to reintroduce some familiar faces from the past. 1.52% remains in play, but now as a ceiling. It put in an impressive performance as a floor leading up to today's breakout. In fact, in that sense, we'd really need to see Monday's trading remain under 1.52% to confirm the breakout. From there, 1.46% is the next rally target. As far as nitty gritty movement is concerned, there are 2 key considerations…(read more)

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Source: Mortgage News Daily