Posted To: MBS Commentary
Today is light in terms of scheduled economic data and events. This will change rapidly over the next 2 days (ADP/ISM services tomorrow, followed by NFP Friday). That leaves today as a sort of pre-game warm-up before traders get back to more serious business. Still, the way trading unfolds can tell us about underlying sentiment. One of the biggest questions at the moment is whether or not we’ve seen enough weakness for bond traders to get comfortable as “buyers” again. In other words, we’re looking for signs of a ceiling bounce for rates. In terms of technical analysis, several formulas suggest now is a good time. That’s not to say the math is suggesting that bonds WILL bounce here after 5 ugly, red days. Rather, the technicals suggest bonds have increasingly gotten into…(read more)
Via:: MBS Day Ahead: Looking for Signs of Support Amid Muted Data
