MBS UPDATE: Volatility and Resistance (updated 2:15pm)
Every now and then the old crystal ball comes through in a pinch, but broken clocks are right twice a day they say... check the original post at the bottom and observe the results in this top chart. Spooky, eh? Now officially not concerned about any lenders repricing for worse...
original post....
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Some traditional post auction volatility has entered the scene. As stocks have continued to move higher and profits have been taken, we've seen a retracement in bonds. At this point, it appears to be technical in nature and thus not a major cause for concern. Pretty much, the only people that need this update are those who got a reprice for the better after the auction and want to avoid a potential reprice for the worse. All others: no reprice for the worse should arise from this selling. Furthermore, the internal trendline at 3.65-3.66 (aka 3.65+) looks very pertinent for the rest of the day. Wouldn't be surprised to see a bounce... So again, this post is ONLY for folks that saw a reprice for the better following the auction, and I know most did not. FURTHERMORE, if you DO get a reprice for the better AFTER 2pm, it's likely this selling will have been baked in to that.