MBS Day Ahead: How The Range Expands

By Matthew Graham

Posted To: MBS Commentary

If you’re just joining us, we’ve been talking quite a bit in recent weeks about a consolidation range/trend in the bond market. This refers to a series of higher lows and lower highs resulting in a narrowing trading range–one that eventually runs out of room. When we started tracking this trend, the converging lines suggested bonds would need to make a decision before the end of February, but the confluence of big-ticket data and events didn’t suggest a big breakout until halfway through March. How would we reconcile that? Like this: Simply put, when a consolidating range is on course to consolidate too quickly, the baseline assumption is that we’ll have to widen the trendlines a bit as certain days seemingly push the boundaries. Tuesday and Wednesday of this week were such…(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: How The Range Expands

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

The Richest Appraiser in Babylon

If you’ve not read “The Richest Man In Babylon” by George S. Clason, stop reading …