MBS AFTERNOON: Slightly Weaker Into The PM

MBS and Treasury prices have both come off a few ticks in the last few hours, but not to the extent that reprices for the worse are a significant risk.  In fact the 2 day trends that favor a narrowing range, with lower highs and higher lows are still intact.  Only the trends of "higher lows" (lower highs in terms of yield), have been violated.  You'll be able to see those more aggressive trends outlined in teal below whereas the 2 day narrowing range is in red.

So again, no panic necessary on this gentle correction, and if anything, bonds holding the new lower range against the backdrop of rallying stocks  is promising at the least if not outright positive.