Posted To: MBS Commentary
The week before last (the one where omicron resulted in faster-paced stock losses and bond gains) 10yr yields ran into some resistance on their journey lower. For 3 straight trading sessions, yields tried to break below 1.42%, but they were turned away each time. Now this week, the same level has turned away several breakout attempts. This morning was the latest example. These sorts of pivot points are rarely perfect lines in the sand. Many times, what we refer to as 1.42% is actually a small zone of yields in a tight range around 1.42%. This particular series of bounces has been better than normal. It's almost exclusively contained in a range of less than 1bp between 1.41 and 1.42. If we break the candlesticks down into an hourly view, we can see the slight variations. Ultimately, it's…(read more)
Source: Mortgage News Daily
