If you think of this AM's data giving bond prices a forceful and extended push lower, we are now at the point where the guiding hands are removed and the bike is left to it's own parnertia (oops, did I say "parnertia" I mean "inertia"), slowly drifting in the same general direction as the original push but with the characteristic lack of urgency and directionality that could only come in the absence of guidance and suggestion. In other words, the brunt of this AM's smackdown has come and gone, and now we're simply leaking out to the downside as is the norm for Friday price drops.
Oh yes my friends... I AM indeed so bored that that IS a gradient effect you see in the charts. Ok, well maybe not really, but I had to do something to show my protest of the same market forces that AQ and I first began lamenting months ago. Perhaps we are not so indignant as those days, but only due to capitulative resignation. You've been right there with us as we've all been forced to accept the reality that market always wins. Even if we don't end up going out at the exact levels from the beginning of the week, it's so damn close that we're all still more than justified in throwing our arms up in protest and heading out to our mutual local purveyors of frosty Diet Cokes (or whatever...).
Since the nominal MBS Closing commentary has already been written 17 times in the past 2 weeks (just change the date and would you even notice?), maybe we'll talk about the concept of "price discounts everything" when it comes to technical price levels. Any thoughts or questions in the next hour, get 'em in the comments now as I can already hear those "Diet Cokes" calling to me saying "it's ok buddy, the markets don't love you like I do..."
MBS Market Alerts
