Wednesday, August 15, 2018
What’s going on and why does it matter?
Mortgage bonds have rebounded toward their 100-day moving average, and it will be interesting to see if they can break above that level. The 100-day moving average has been a formidable ceiling of technical resistance for nearly a year. Today’s economic reports came out stronger than market expectations, but the market’s attention seems to be focused on headlines coming out of Turkey including an announcement of a doubling of tariffs on US imports, and concerns about global economic growth. Global stock markets were sharply lower overnight and it seems like the US stock market is poised to open lower as well. The Fed is scheduled to purchase up to $190 million of 15-year conventional mortgage bonds today.