MBS OPEN: Rates at Crossroads. What Range Will Prevail?

Posted To: MBS Commentary

Good Morning. Once again, rate futures prices moved modestly lower in the overnight session...albeit in below average volume (again). What is obvious to me is the 10 yr contract's failiure to break through what I have been calling "position resistance". This is the price range where the most recent high volume sell off occurred 116-24 and 116-30 I suppose it is appropriate to take some solace from the fact that 10s are not doing worse, especially when you consider that stock futures made further gains overnight. After four days of a limited data, which made it easy for traders to bake in a concessionary backup in TSY yields, the week's most important econ event is upon us: RETAIL SALES In the MBS CLOSE , MG called attention to a technical crossroads in benchmark 10s, "rate...(read more)

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