Posted To: MBS Commentary
1.62% has been one of the most important technical levels for 10yr yields in the past month. After breaking above last week, we had a chance to confirm a break back below yesterday and ended up closing to close for a clear signal. Overnight weakness emphasizes the challenges facing an easy return back below 1.62%, even if the situation isn’t as gloomy as it was several days ago when the bigger risk was a break above 1.75%. To reiterate yesterday’s afternoon commentary and video: recent resilience doesn’t confirm a friendly reversal back toward lower yields as much as it builds a case for sideways momentum. Unfortunately, sideways momentum means a healthy mix of stronger and weaker trading days. Better than where we were, but not as good as we’d like to be! There are no significant…(read more)
