MBS RECAP: Tradeflow, Technicals Win Out Despite Weaker Data

Posted To: MBS CommentaryMBS Live : MBS Afternoon Market Summary Whether or not we agree that the " Great Rotation " will continue to, well... rotate, its inherent themes have been playing out in markets daily. Today was a great example as the mornings gains (which looked like a push back against yesterdays weakness in a "continuation" sort of way) turn out to merely be short-covering that paves the way for more neutral perches to add the next position. In other words, we know that plenty of bond traders had open bets on higher rates last week (more on that from the widely followed JPM Survey showing less neutral, more longs, and most shorts since July 2011). The break below 1.97 overnight and this morning in 10yr yields was a line in the sand for short positions put on last week, and the weaker Consumer Confidence...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/mortgage_rates/blog/293494.aspx @ uwad.com