MBS Morning: Range-Bound Risks as Rally Hits The Floor

Bonds are starting the day in moderately weaker territory.  In so doing, 10yr yields are rejecting the opportunity to break below the 1.30% technical level.  Notably, they rose above 1.30% just before the 3pm close yesterday (the time of day that holds the most weight for technical analysts in day-over-day terms). It remains to be seen how much 1.30% matters.  It's been more of a "center of gravity" for a sideways range recently as opposed to a true pivot point (unlike July).  Coincidentally, 1.30% currently lines up with the bottom of the consolidation pattern, and in that regard, the bounce is much more relevant.