Posted To: MBS Commentary
Yesterday’s morning commentary contained a chart and discussion on Treasury yields breaking above the upper bollinger band for 5 consecutive days. Yesterday went on to extent that streak to 6 days. At this point, things are getting extremely interesting due to how uncommon this sort of streak is. In the last 20 years (and it could be longer, but I stopped looking once I got to the 1994 selling spree), there have only been a few examples of 6-day sell-offs that break above the upper Bollinger band, and only ONE example that made it to 7 days (December 7-15th for what it’s worth). What’s the point? The point is the excitement is guaranteed! We’re either going to see the first bounce of this sell-off arrive a day before or on the day of a big NFP release OR we’re going to see…(read more)