|This email was sent to you by:|
Anonymous User |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Bond Markets Stronger Overnight; Some Resistance at Thursday's Best Levels
Posted to: Micro News
Monday, January 06, 2014 9:27 AM
Both MBS and Treasuries have shied away from breaking through Thursday's best levels this morning--2.969 for 10yr yields and 103-07 for Fannie 4.0 MBS.
In Treasuries' case, yields perfectly matched the resistance level while MBS only made it up to 103-05. That said, they're still up 4/32nds on the day at 103-04.
As expected, participation is returning to markets after the holiday/weather combo made for a lighter than normal post-New-Year trade. So far, that hasn't affected ranges, but it increasingly looks like that can and will change this week.
In other words, using Treasuries as an example, we've had a compact, sideways range since the 26th. Leaving out the last few hours of the 31st, it's been 3.021 to 2.968, and this week's data and events are very likely to result in a break of that range.
The first contender in that regard is coming up a 10am with ISM Non-Manufacturing, seen rising to 54.8 from 53.9 previously.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.