MBS MORNING: Pushing Into New Highs

Things are looking good....

We're now at the point where we're prepared to get confirmation from the yield curve.  The bottom of the yield range for the 10yr tsy is around 3.30 with current yields at 3.33.    It would be a bit of a stretch for things to break meaningfully through there today.  Also, with MBS prices this high, it's hard for things to push higher without the risk of profit-taking.  Whatever the case, there is one glowing positive from today, and that is WE'VE MANAGED TO HOLD ABOVE RECENT RANGE HIGHS AND IF THAT IS ACCOMPLISHED 2 DAYS IN A ROW, IT'S ANOTHER STEP IN THE RIGHT DIRECTION.

Only major word of caution is that UNTIL the 10 yr shows us it's willing to go BELOW 3.3, we can't really assume ongoing bullishness, or at least not with as much certainty.  That said, today's price levels are hopefully good for some of the best rates you've seen in the past four months.