MBS LUNCH: Improvements Narrowing Toward Pivotal Levels

In the title of this commentary, "pivotal" is a bit misleading as it's not used in the classic sense of the word, but rather, the literal.  Both MBS and Treasuries, riding on some moderate improvements, have begun their classic descent into Fence-Sitter International, a make-believe airport where bond prices come to rest on internal trendlines and inflection points.

For MBS, what else would that be but the high 100-20's that have received so much attention from us for nigh on half a year now.  And in treasuries, AQ laid out his pivotal pivots of the day with 3.68 among them.  And there we are:

In short, prices and yields moved quickly to the desired inflection point and, as if bound by gravity, have merely orbited those levels ever since.  With that in mind, I suppose the only real news for the rest of the day will be if either heavenly body deviates from these orbits, but with 3pm marks right around the corner and being the Friday before a 3-day weekend, we probably still won't get justification to care.