Posted To: MBS Commentary

For the bond market, almost the entirety of the 2nd half of 2019 was dominated by a consolidation pattern (a narrowing trend where periodic highs and lows in rates move closer and closer together). As recently as the beginning of last week, that consolidation trend was still very much intact, but it began to come into question after the gains inspired by US/Iran geopolitical tensions. With bonds holding those gains over the weekend, we suddenly find ourselves in a situation where the boundaries of that consolidation are arguably being broken. Granted, there are a few different ways to place the lower line. For instance, we could opt to use a line that connects the greatest number of lows, or simply the lowest lows. But in either case, those lines are now broken. The only one that remains is…(read more)

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Source: Mortgage News Daily