Traders have taken their cue from Big Ben and are really pushing the market around. Conditions are thin (light volume) and volatile which mixed together can be a toxic brew. Sir Ben’s call to reflate the economy no matter how much we have to print (dollars) has given traders reason to sell note and bonds out the curve. 10 year notes through 30 year bonds are taking a pounding with the note currently down 27/32’s. Mortgage backs, which track the 10 year closely, have gotten a bloody nose as well.
Text book trading here as this baby is tracking the down trend line like a hunting dog. Good news is that we are at good support mentioned this morning. Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side.
