Posted To: MBS Commentary

May's nonfarm payrolls number (released on June 4th) is the next obvious instance of a big ticket market mover. Between now and then, there are several other potentially significant reports, but it's hard to imagine any one of them making a compelling case for bonds to break free of the sideways range that's been intact for several months now. If we want to look at a shorter-term version of a sideways range, we can actually make a case for something happening (something good). After holding a very narrow range last week (the narrowest since mid-January), yields are trying (successfully) to break out this morning. The barrier in question would be the famous 1.62% level. The next major stop on the rally train would be quite a bit lower at 1.53%. In terms of scheduled events, today's…(read more)

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Source: Mortgage News Daily