Posted To: MBS Commentary

Last week was really the first truly interesting week of 2020 (and arguably of the past several months) as far as the prevailing range in the bond market is concerned. Yields had been narrowing since September and were holding a very tight range since mid-October. By Friday, 2 of the 3 potential boundaries (there are different ways to approach them) were broken by a rally in the bond market. But "broken" is a bit of a subjective term when it comes to following "key levels" or other lines (like moving averages or trend-lines) that a technical analyst might use to interpret bond market momentum. Traditionally, the first move past such a line is referred to as a "test." In other words, bonds are testing their ability to operate on the other side of a line that had…(read more)

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Source: Mortgage News Daily