Posted To: MBS Commentary
How can you avoid reading this prose when the headline is so gripping? Slow trading! Sideways grind! Lack of obvious near-term inspiration! If we’re on the edge of our seats, it’s only because we’re working on our posture. Of course the market can legitimately surprise us at any time, but the baseline for the first half of the week is ongoing consolidation (i.e. a mostly sideways “leveling-off”) of 2021’s initial rate spike. The consolidative vibes were in doubt as of last Thursday morning, when it looked like bonds might try to take a stronger tone. Since Thursday afternoon, however, yields have moved back into the previous range in fairly linear fashion. 1.58+ and 1.62+ are the 2 main resistance/floor levels for the range. There’s still a shot at glory though…(read more)
