Posted To: MBS Commentary

In addition to being a 4-day trading week due to yesterday's holiday, there's also a general lack of big-ticket economic data on tap. In fact, there isn't a single report that qualifies as "top-tier" in terms of market movement potential and the only candidates that come close are the Markit PMIs on Friday. That's unfortunate because the US bond market is desperately in need of some direction after almost half a year of broad consolidation and 1-3 months of intense consolidation. "Broad" and "intense" are subjective terms, so let's quantify them quickly. In the chart below, the broad consolidation isn't highlighted, but it would begin in the first 2 weeks of September, which marked a much smaller jump between highs/lows than the one seen…(read more)

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Source: Mortgage News Daily