The Smart Team of NOVA® Home Loans

MBS Day Ahead: Bonds Look to Challenge Consolidation Range with 6th Win in a Row

Posted To: MBS Commentary

Bond markets are looking for their 6th straight victory today. Each of the past 5 days have seen yields end the day lower than they opened. While that's not quite as strong a showing as ending the day lower than the previous day's close, it still makes for green candlesticks on the chart. This speaks to positive momentum during domestic hours. If you're cautious, the following chart makes it look like the rally is about to run out of steam the same way it did in early February. If the market continues to favor the range-bound approach, the cautious mindset is probably a very good idea . If bonds are ready to break the range, however, there's plenty of room for rally to run based on technical levels that are not yet "overbought" (the lower horizontal lines on the 2…(read more)

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Source: Mortgage News Daily

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