Posted To: MBS Commentary
Just when you thought we might be done talking about “consolidations,” there’s that word again! I’d suggested on Friday that the modest bond market gains helped to confirm a consolidation as opposed to a correction, with the recent yield highs of 2.92% acting as the dividing line. With Friday closing just under 2.90%, we weren’t exactly out of the woods with respect to the days leading up to Wednesday’s Fed festivities. That changed today , for the most part, as yields rallied all the way down under 2.86%. At this point, it would take a fairly serious bout of weakness tomorrow for the “consolidation” definition to be questioned. But why does the definition matter? A a matter of fact, the words “consolidation vs correction” don’t really matter…(read more)
Via:: MBS RECAP: Stock Sell-Off Makes Strong Case For Bond Consolidation
