Mortgage Backed Securities had a wild day yesterday. Off 81 bps at the low but did rally to close at a support level see chart below noting the circled red candlestick representing yesterdays trading day(amazing how that works)
Bernanke spoke yesterday about inflation believing the sluggish growth of our economy will hold donw inflation, seemingly not considering a rate hike in the near future. Bonds like good inflation talk and that was okay so we will see how bonds react this morning. Retail sales out Thursday...should see a big reaction in the market.
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