For context on the headline, go no further until you've seen the most recent post below this one

We're keeping a close watch on the moment to moment technicals in 10 yrs and a clear triangle and/or "pennant" had developed which also coincided with some trend lines in MBS.  We're most concerned with the lower trendline which is what is pictured below.  A few moments ago, we broke the top side trendline in tsy yield.  That's bad, BUT, we have STILL not moved over 3.9996% on the yield!  So although the techs are negative, if the 10 yr continues to fight off the urge to hit 4.0, we could at least go sideways and probably up a bit from where we are.

For now though, volatility continues to reign supreme, so anything can happen.  When this is the case, remember lenders are quicker to take it away, even if the volatility isn't necessarily leading to worse prices.  Whatever the case, we'll keep you posted.