Thursday , 17 October 2019

MBS Day Ahead: Bonds Break One Ceiling, But The Next One is More Important

By Matthew Graham

Posted To: MBS Commentary

Ever since bottoming out in early 2019, 10yr Treasury yields faced a pretty clear line in the sand from a technical standpoint. 2.82% stuck out like a sore thumb overhead due to multiple instances where it acted as a floor in 2018. It may have seemed too far away to worry about 3 weeks ago, but with 2.75% being broken yesterday/today, 2.82% is next in line. Would a break above 2.82% be the end of the world for bonds? Not necessarily. In fact, in the biggest of pictures, as long as yields don’t break above 3.26%, the longer-term outlook could remain positive. It would just be getting off to a rockier start compared to a scenario where yields are instead able to hold fairly steady in the 2.75-2.82 range until finding a reason to rally. Either way, the longer-term outlook will depend on bonds…(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Via:: MBS Day Ahead: Bonds Break One Ceiling, But The Next One is More Important

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

The Bright Side of Residential Investment

Despite threats to economic growth from factors such as trade tensions, according to Fannie Mae, …